The Manipur Goods and Services Tax Act, 2017

(1)ThisActmaybecalledtheManipurGoodsandServicesTaxShorttitlem:and Act,2017.mmm‘m‘m (2)ItextendstothewholeofManipur (3)ItshallcomeintoforceonsuchdateastheStateGovernment may,bynotificationintheOfficialGazette,appoint: Providedthatdifferentdatesmaybeappointedfordifferent provisionsofthisActand anyreferenceinanysuchprovisionsto thecommencementofthisActshallbeconstruedasareferenceto thecomingintoforceofthatprovision.

ACT!" 2. In this Act, unless the context otherwise requires,— (1) (2) (3) “actionable claim” shall have the same meaning as assigned to it in section of the Transfer of Pfopeity Act, 82; “address (5f delivery” means the address of the recipient of goods or services or both indicated on the tax invoice issued by a registered person for delivery of such goods or services or both; “address on recor ” means the address of the recipient as available in the records of the supplier; Definitions.

(4) (5) (6) (7) <8) (9) (10) (11) (12) ,assignedtoitinsection92AoftheIncome-taxAct,1961; 43of1961. “adjudica‘tingauthority”meansanyauthority,appointedor authorisedcompetenttopassanyorderordecisionunder thisAct,butdoesnotincludetheCommissioner,Revisional Authority,theAuthorityforAdvan‘ceRuling.theAppellate AuthorityforAdvanceRuling,theAppellateAuthorityand theAppellateTribunal; “agent”meansaperson,includingafactor,broker,commission agent,arhatia,delcredereagent,anauctioneeroranyother mercantileagent,bywhatevernamecalled,whocarriesonthe businessofsupplyorreceiptofgoodsorservicesorbothon behalf ofanother; “aggregateturnover”meanstheaggregatevalueofalltaxable supplies(excludingthevalueofinwardsuppliesonwhichtax15 payablebyapersononreversechargebasis),exemptsupplies, exportsofgoodsorservicesorbothandinter—Statesuppliesof personshavingthesamePermanentAccountNumber,tobe computedonallIndiabasisbutexcludescentraltax,Statetax, -Unionterritorytax,integratedtaxandcess; “agriculturist”meansanindividualoraHinduUndividedA Familywhoundertakescultivationofland—' (a)byownlabour,or (b)bythe.labouroffamily,or (c)byservantsonwagespayableincashorkindorby hiredlabourunderpersonalsupervisionorthepersonal supervisionofanymemberofthefamily; “AppellateAuthority”means,anAuthorityappointedor authorisedtohearappealsandreferred”toinsection107; “AppellateTribunal”meanstheGoodsandServicesTax AppellateTribunalreferredtoinsection109; “appointedday”meansthedateonwhichtheprovisionsof thisActshallcomeintoforce; “assessment”meansdeterminationoftaxliabilityunderthis Actandincludesself-assessment,re—assessment,provisional assessment,summaryassessmentandbestjudgement assessment; “associatedenterprises”shallhavethesamemeaningas \

54of1963 (13) “audit” means the examination of records, returns and other (14) (15) (16) (17) documents maintained or furnished by the registered person under this Act or the miles made there under or under any other law for the time being in force to verify the correctness of turnover declared, taxes paid, refund claimed and input tax credit availed, and to assess his compliance with the provisions of this Act or the rules made thereunder; V “authorised bank”. shall mean a bank or a branch of a bank authorisedbythe Central GammmodlectfllemOtany other amount payable under this Act; ~ “audiorised representative” means the representative as referredtounder section 116; “Board” means the Central Board of Excise and CustOms constituted under the Central Boards of Revenue Act, 1963; “business” includes- (a) any trade, commerce, manufacture, profession, vocation, adventure, wager or any other similar activity, whether or not it is for a pecuniary benefit; - (b) any activity or transaction in connection with or incidental or ancillary to sub—clause (a); (c) any activity or transaction. in the (nature of sub-clause (a), whether or not there is volume, frequency, continuity or regularity of such transaction; (d) supply or acquisition of goods including capital goods and services in connection with commencement or closure of business; (e) provision by a club, association, society or any such body (for a subscription or any ”other consideration) of the facilities or benefits to its members; (f) admission, for a consideration, of persons to any premises; _ (3) services supplied by a person as the holder of an office which has been accepted by him in the course or furtherance of his trade, profession or vocation;

38 of1949 (18) ‘11)servicesprovidedbyaraceclubbywayoftotalisatGrier' alicencetobookmakerinsuchclub;and (i)anyactivityortransactionundertakenbytheCentral Government,aStateGovernmentoranylocalauthority inwhichtheyareengagedaspublicauthorities; “businessvertical”meansadistinguishablecomponentofan enterprisethatisengagedin‘thesupplyofanindividualgoods orservicesoragroupofrelatedgoodsorserviceswhichis subjecttorisksandreturnsthataredifierentfromthoseofthe otherbusinessverticals.. , Explanation:—Forthepurposesofthisclause,factorsthatshould ‘beconsideredindeterminingwhethergoodsorservicesanrdatzed include— (’19) (20)“ (21) (22) (23) (a)thenatureofthegoodsorserViCes;, (b)thenatureoftheproductionprocesses;. (c)thetypeorclassofcustomersforthegoodsorservices; ((1)themethodsusedtodistributethegoodsorsupplyof services;and (e)the natureofregulatoryenvironment(wherever applicable),includingbanking,insuranceorpublic utilities; “capitalgoods”meansgoods,thevalueofwhichiscapitalised inthebooksofaccountsofthepersonclaimingtheinputtax creditandwhichareusedorintendedtobeusedinthecourse "orfurtheranceofbusiness; a1taxableperson”meansapersonwhooccasionally; undagtakestransactionsinvolvingsupplyofgoodsorservices’ orboth111thecourseorfurtheranceofbusiness,whetheras pxmcipalyagenta:inanyothercapacity,inthetaxableterritory wherehehas:19fixedplaceofbusiness;2

“centraltax’thecentralgoodsandservicestaxlevied undersection9oftheCentralGoodsandServicesTaxAct; “cess”shallhavethesamemeaningasassignedtoitinthe GoodsandServicesTax(Compensationto’States).Act; “charteredaccou’nt”meansacharteredaccountantas definedinclauseQofsub-section(1)ofsection2ofthe CharteredAccountantsAct,1949;

56of1980 (24) “Commissioner” means _ the Commissioner of State tax appointed under section 3; (25) "Commissioner in the Board” means the Commissioneri referred to in section of the Central Goods and Services " Tax Ad; ' > (26) “common portal” means the common goods and services tax electronic portal referred to in section 146; (27) “common working days” shall mm such days in succession ' which are not declared as gazetted holidays by the Central Goyernment or the Government of Manipur; (28) “company secretary” means a company secretary as defined in clause (c ) of sub-section '(1) of section of the Company Secretaries Act, 1980; . (29) “competent authority” means such authority as may be notified by the Government; . ‘ * (30) “composite supply” means'a supply made by a taxable person . to a recipient consisting of two or more taxable supplies of goods or services or both, or any combination thereof, which are naturally bundled and supplied in conjunction with each other in the ordinary course of business, one of which is a principalsupply;' Illustrationz- Where goods are packed and transported with insurance, the supply bf goods, packing materials, transport and insurance is a composite supply and supply of goods is a principal supply. , (3 1) ' “consideration” in relation to the supply of goods or'sgggvicesor ' both includes— . V , ,5; , : (a) any payment made or to be madeywhetheituin‘emoney or otherwise, in respect of,’ htiespons’e atbs‘g'QFfOl’ the inducement of, the supply of goods or services or both, whether by the recipient or by $1.31!.me person but shall not include any subsidy given by; _; {?Central Government or a State Government; ' " '

23of1959 (b) the monetary value of any act or forbearance, in respect of, in'response to, or for the inducement of,_the supply of goods or services or both, whether by the recipient or by any other person but shall not include any subsidy given by the Central Government or a State Government: - Provided that a deposit given in respect of the supply of goods or services or both shall not be considered as payment made for such supply unless the supplier applies such deposit as consideration for thesaidsupply; (32) (33) (34) (35) (365 (37) (38) (39) (40) "continuous supply of goods” means a supply of goods which is provided, or agreed to be provided, continuously or on recurrent basis, under a contract, whether or not by means of a wire, cable, pipeline or other conduit, and for which the supplier invoices the recipient on a regular or periodic basis and includes supply of‘such goods as the Government may, subject to such conditions, as it may, by notification, specify; “continuoussupplyofservices”meansasupplyofservices which is provided, or agreed to be provided, continuously 'or onrecurrentbasis,tinderacontract,fora periodexceeding threemonthswithperiodicpaymentobligationsandincludes supplyofsuchservicesastheGovernmentmay,subjectto suchconditions,asitmay,bynotification,specify; “conveyance”includesavessel,anaircraftandavehicle; “costaccountant”meansacostaccountantasdefinedinclause (c)ofsub-section(1)ofsection2oftheCostandWorks AccountantsAct,1959; “Council”meanstheGoodsandServicesTaxCouncil establishedunderarticle279AoftheConstitution;' “creditnote”meansadocumentissuedbyaregisteredperson undersub-section(1)ofsection34; “debitnote”meansadocumentissuedbyaregisteredperson undersubsection(3)ofsection34; “deemedeitports”meanssuchsugpliesofgoodsasmaybe notifiedundersection147;. / , ‘fdesignatedauthority”meanssuchauthorityasmaybenotified bytheCommissioner;1,..

210f2000 (41) (42) (43) (44) (45) (45) (47) “docuinent”includeswrittenorprintedrecordofanysortand electronicrecordasdefinedintheInformationTechnology .Act,2000- “drawbaclf’inrelationtoanygOOdsmanufacturedinIndia "andexported,meanstherebateofduty,taxorcesschargeable onanyimportedinputsoronanydomesticinputsorinput servicesusedinthemanufactureofsuchgoods: “electroniccashledger”meanstheelectroniccashledger referredto insubsection(1)ofsection49; “electroniccOmmerce”meansthesupplyofgoodsorservices orboth,includingdigitalproductsoverdigitalorelectronic network; “electroniccommerceoperator”meansanypersonwhoowns, operatesormanagesdigitalorelectronicfacilityorplatform forelectroniccommerce;. “electroniccreditledger”meanstheelectroniccreditledger referredtoinsub-section(2)ofsection49; “exemptsupply"meanssupplyofanygoodsorservicesorboth whichattractsnilrate.oftaxorwhichmaybeexemptfromtax 'undersection11,orundersection6oftheIntegrated'Goods (48) (49) (50) andServicesTaxAct;andincludesnon-taxable supply; “existinglaw”meansanylaw,notification,order,ruleor regulationrelatingtole'Vyandcollectionofdutyortaxongoods orservicesorbothpassedormadebeforethecbmmencement ofthisActbytheLegislatureoranyauthorityorperson havingthepowertomakesuchlaw,notification,order,ruleor regulation; “family”means,— (i)thespouseandchildrenoftheperson,and (ii)theparents,grand-parentsbrothersandsistersofthe personiftheyarewho11yormainlydependentonthe saidperson;. . “fixedestablishment”meansaplace(otherthantheregistered placeofbusiness)whichischaracterisedbyasufficientdegree, ofpermanenceandsuitablestructureintermsofhumanand technicalresourcestosupplyseryices,ortoreceiveanduse servicesforitsownneeds;

80of1976 (51) (52) (53) (54) (55) (56) (57) (58) (59) (60) (61) “Fund” means the Consumer Welfare Fund established under section 57; “goods”meanseverykindofmovablepropertyotherthan moneyandsecuritiesbutincludesactionableclaim,gmwing crops,grassandthingsattachedtoorformingpartofthe landwhichareagreedtobeseveredbeforesupplyorundera contractofsupply; “Government”meanstheGovernmentofManipur; “GoodsandServices“Tax(CompensationtoStates)Act” meanstheGoodsandServicesTax(CompensationtoStates) Act.2017; “goodsandservicestaxpractitioner”meansanypersonwho hasbeenapprovedundersection48toactassuchpractitioner; “India”meanstheterritoryofIndiaasreferredtoinarticle1 oftheConstitution,itsterritorialwaters,seabedandsub-soil underlyingsuchwaters,continentalshelf,exclusiveeconomic zoneoranyothermaritimezoneasreferredtointheTerritorial Waters,ContinentalShelf,ExclusiveEconomicZoneandother MaritimeZonesAct,1976,andtheairspaceaboveitsterritory andterritorialwaters ‘IntegratedGoodsandServicesTaxAct”meanstheIntegrated GoodsandServicesTaxAct,2017; “integratedtax”meanstheintegratedgoodsandservicestax leviedundertheIntegratedGoodsandServicesTaxAct; “input”meansanygoodsotherthancapitalgoodsusedor intendedtobeusedbyasupplierinthecourseorfurtherance ofbusiness; “inputservice”meansanyserviceusedorintendedtobeused byasupplierinthecourseorfurtheranceofbusiness; “InputServiceDistributor”meansanofficeofthesupplierof goodsorservicesorbothwhichreceivestaxinvoicesissued undersection31towardsthereceiptofinputservicesand issuesaprescribeddocumentforthepurposesofdistributing thecreditofcentraltax,Statetax,integratedtaxorUnion territorytaxpaidonthesaidservicestoasupplieroftaxable goodsorservicesorbothhavingthesamePermanentAccount Numberasthatofthesaidoffice;

(62) (63) (64) (65) (66) (67) (63) (69) “inputtax”inrelationtoaregisteredperson,meansthecentral tax,Statetax,integratedtax01Unionterritorytaxchargedon anysupplyofgoodsorservicesorbothandincludes— (a)theintegratedgoodsandservicestaxchargedonimport ofgoods; (b)thetaxpayableundertheprovisionsofsubsections(3) and(4)ofsection9; (c)thetaxpayableundertheprovisionsofsub-section(3) and(4)ofsection5oftheIntegratedGoodsandServices TaxAct;-or (d)thetaxpayableundertheprovisiensofsub-sections(3) and(4)ofsection9oftheCentralGoodsandServices TaxAct, butdoesnotincludethetaxpaidunderthecompositionlevy; “inputtaxcredit’meansthecreditofinputtax; “intra-Statesupplyofgoods’shallhavethemeaningas assignedtoit1nsection8 oftheIntegratedGoodsandServices TaxAct; “intra-Statesupplyofservices”shallhavethemeaningas assignedtoitinsection8oftheIntegratedGoodsandServices TaxAct; “invoice”or“taxinvoice”meansthetaxinvoicereferredtoin section31; “inwardsupply”inrelationtoaperson,shallmeanreceiptof goodsorservicesorbothwhetherbypurchase,acquisitionor anyothermeans,withorwithoutconsideration; “jobwork”meansanytreatmentorprocessundertakenbya personongoodsbelongingtoanotherregisteredpersonand theexpression“jobworker”shallbeconstruedaccordingly; “localauthority”means— (a)a“Panchayat’asdefinedinclause(d)ofarticle243ofthe Constitution; (b)'a“Municipality"asdefinedinclause(e)ofarticle243Pof theConstitution; (c)aMunicipalComnntteaaZillaParishad.aDistrictBoard. and anyotherauthoritylegallyentitledto,orentrusted bytheCentralGovernmentoranyStateGoya‘nment withthecontrolormanagementofamunicipalorlocal fund;

(ldm (70) mi (72) (d). (e) (f) (g) a Cantonment Board as defined in section of the Cantonments Act, 2006; 'a Regional Council or a District Council constituted under the SixthSchedule to the Constitution; a Development Board censtituted under article of the Constitution; or a Regional Council constituted under article 371A of the Constitution; - “location of the recipient of 's’ei'vices” means,- (a) (b) (C) «D where a supply is received at a place of business for which the registration has been obtained, the location of such place of business; where a supply is received at a place other than the place . of business for which registration has been obtained (a fixed establishment elsewhere), the Incation of such fixed establishment; where a supply is received at more than one establishment, whether the place of business or fixed establishment, the location of the“ establishment most directly concerned with the receipt of the supply; and in absence of such places, the location of the usual place . of residence of the recipient; “location 'of the supplier of services” means,— (a) (b), (C) (d) where a supply is made from a place of business for which the registration has been obtained, the location of such place of business; where a supplyis made from a place other than the place of business for which registration has been obtained (a fixed establishment elsewhere), the location of such fixed establishment; ' ' » where a supply is made from more than one establishment, whether the place of business or fixed establishment, the location of the establishment most directly concerned with the provisions of the supply; and in absence of such places, the location of the usual of residence of the supplier; ‘ / “manufacture” means processing of raw material or inputs in any manner that results in emergence of a new product having a distinct name, character and use and the term “manufacturer” shall be construed accordingly; ‘

S9of1988 (73) (74) “market value” shall mm the full amount which a recipient of a supply is required to pay in order to obtain the goods or services or both of like kind and quality at or about the same time and at the same commercial level where the recipient and the supplier are not related; “mixed supply” means two or more individual supplies of taxable goods or services, or any combination thereof, made in conjunction with each other by a taxable person for a single price where such supply does not constitute a composite supply. Illustration:- A supply of a package consisting of canned foods, sweets, chocolates, cakes, dry fruits, aerated drinks and fruit juices when items (75) (76) (77) (78) (79) (80)' supplied for a single price is a mixed supply. Each of these can be supplied separately and is not dependent on any other. It shall not be a mixed supply if these items are supplied separately; “money? means the Indian legal tender or any foreign currency, cheque, promissory note, bill of exchange, letter of credit. draft, pay order, traveller cheque, money order, postal or electronic remittance or any other instrument recognized by the Reserve Bank of India when used as a consideration to settle an obligation or exchange with Indian legal tender of another denomination but shall not include any currency that isheld for itsnumismatic value; “motor vehicle” shall have the same meaning as assigned to it in clause (28) of section-Z of the Motor Vehicles Act, 1988; “nen-resident taxable person” means any person who occasionally undertakes transactions involving supply of goods or services or ,both, whether as principal or agent or in any other capacity, but who has no fixed place of business or residence in India; “non-taxable supply” means a supply of goods or services or both which is not leviable to tax under this Act or under the Integrated Goods and Services Tax Act or under the Union Territory Goods and Services Tax Act; “non-taxable territory” means the territory which is outside the taxable territory; “notification” means a notification published in the Oflicial Gazette and the expressions ‘notify‘ and 'notified’ shall be construed accordingly;

of2013 21of1860 (81) 13"" “other territory” iddudes territories other :than those comprising in a State and these referred to m sub-clauses (a) ' 32mm ofcianse (1149 (82) (83) {wwwn~13-»121., “output tax? in relation to a taxable person, means the tax chargeable undei this A 3; 9n taxable supply of goods or services or both made by .or by his agent but exdudes tax payable by him on reverse charge basis; 7,

“outward supply” in relation to a taxable person, means supply of goods or services or both, whether by sale, transfer, barter, . exchange, iicenCe, rental lease or disposal 01- any other mode, made or agreed tb be niade by such person in the course or furtherance of business; <84»)

(a)anindividual; (b)aHinduundividedfamily titeracompany; ”(d)“afirm;~v (e)aLimitedLiabilityPartnership; (f) an association of persons ’31.- a body of indivxduals, whether incorporated or nohp India 61' outside India; (g) any mention established hym fingr any Central Act, State Act or Provincial Act or a Government company as defined' 1n clause (45) of section of the Companies Act, 9,2013;i ' (h) anybody cnrporate incorporated by or under the laws of acountryoutsideIndia; (i)aca-ogeratlvesocietyregisteredunderanylawrelating tocooperativesocieties; (j)gaiocalauthority;. (k) Central Government or a StatenGovemment; (l) society as defined under the Societies Registration Act, 1860; t, g (m) wt; and 5: v 'zzs'tz (n) every artificial )undrcal persen, mt falhng within any of , the above; ' E (8533splaceofbusmessghpcludes— :~:3a,"5111 (a) a pIacefmm where. thetbusmess is ordinarily carried on, a * andnneludes a Warehouse, «a go’down Or any other place .“ , ewwhéneta Mbte person stores his goods, shpplies or receivesgoodsorservicesorboth;orEz

(86) (87) (88) (89) (90) .(91) (92)“ (és) (b) a place where a taxable person maintains his books of . aécount; or (c)vaplacewhereataxablepersonisengagedinbusiness thmughanagenhbywhatevernamewlled; “place of supply’ means the place of Supply as referted to‘in ChapterVofflieIntegntedGoodsandServrcesTaxAct. ‘prescribed’ means prescribed by niles made undet this Act on the recomniendations of the Council; . 'pnnapal’ means a person on whose behalf an agent carries on the business of supply or receipt of goods or services or both; A ' _ V “principal place of business” means the place ,of business specified as the principal place of business in the certificate of registration; ' “principal supply?” means the supply of goods or services which . Constitutes the predominant element of a composite supply and to which any other supply forming part of that composite supply is ancillary; t . , . “proper officer” in relation'to any function tobe performed under this Act, means the. Commissioner or the officer of the " State tax who isv‘assigne‘fi: that function by the‘Commissioner; “‘quarter” shall meana period Comprising three consecutive calendar months, ending on the last day of March, June, September and December of a calendar year; . “recipient” of supply of goods or services or both, mms— -(a) where a consideration is payable for the supply of goods or services or both, the person who is liable to pay that consideration; (b) where no consideration is payable for the supply of goods, the person to whom the goods are delivered or made available, or to whom possession or use of the goods is "given or mad€'avaflablé: and ' (c) where no consideration is payable for the supply of a _ service, the person to whonfthe service is rendemd. and any reference to a person to whom a supply is made shall be construed as a reference to the recipient of the supply and shall include an agent acting as Sfldlsm behalfof the recipient in relation to the goodssor seams 01' both ’ supplied; ' - - - _

42of1956 (94) “registered person” means a person who is registered under section but does not include a person having a Unique Identity Number. (95) “regulations” incans the regulations made by the Government under this Act on the recommendations of the Council; (96)“removal”inrelationto‘gdods,means—’ (a)despatchoftheg00dsfordeIiVe-Iybythesupplierthereof orbyanyotherpersonactingonbehalfof’suchsupplier; or ,(b)co11ectionofthegoodsbytherecipientthereoforbyany ,otherpersonactingonbehalfofsuchrecipient; (97)“return”meansanyreturnprescribedorotherwiserequiredto befurnishedby'01-underthisActortherulesmadethereunder; (98)“reversecharge?meanstheliabilitytopaytaxbytherecipient ofSupplyofgoodsorservicesorbothinsteadofthesupplierof suchgoodsorservicesorbothundersub-section(3)orsub- section(4)ofsection9,01‘undersub-section(3)ors_ub--section (4)ofsection5oftheIntegratedGoodsandServicesTaxAct; (99)“RevisionalAuthority”meansanauthorityappointedor 7authoriSedunderthisActforrevisionofdecisionororders referredtoinsection108; (100)“Schedule”meansaSchedu1eappendedstothisAct; (101)“securities”shallhavethesamemeaningasassignedtoitin clause(h)ofsection2 oftheSecuritiesContracts(Regulation) Am1956; (102)“services”meansanythingotherthangoods;moneyand 'securitiesbutincludesactivitiesrelatingtotheuseofmoney oritsconversionbycashorbyanyothermode, from one1 form,currencyordenomination,toanotherform,currencyor denominationforwhichaseparateconsiderationischarged; (103)“State”meanstheStateofManiput; (104)“Statetax”meansthetaxleviedunderthisAct; (105)“supplier”inrelationtoanygoodsorservicesorboth,shall meanthepersonsupplyingthesaidgoodsorServicesorboth andshallincludeanagentactingassuchonbehalfofsuch' supplierinrelationtothegoodsorservicesorbothsupplied;

(106) “taif period” means the period for Which the return is fifiuired ‘ ‘ to bé‘finrmshed. (107) “taxable person" means a person who‘ is registered or liable to “ beregisteredtmdersectxonZZorsecnonM " \ (108) “taxable supply” means a snpply of goods or services or both whichisleviable totaxundet-thisAct; Mg» .1 (109) “taxable temtory” means the territory to which the provisions of this Act apply: cm (110) “telecommunication service” means service of any description (including éfe'étroiiic mail. voice mail, data services; audidtext services, video text serfrio‘es, radio paging and cellulir mobile telephone services) which is made available to users by means of any transmission or neception of sign. signals; writing, . ,- images and sounds crimefligencc ofany natum‘. by wire, radio, visual or other electro- magnetic means; (11mm CentralGoods mammaameps thecemral' Goods and Semces TaxAct.2017 ‘1

(112) “we: in State or» “him in Union territoty ineans the aggregate value of taxable supplies (excluding the value ofinwptd supplsesonwhidltaxmpayablebyapersonon reverse Charge basis) and exempt supplies made within a State or Union territory by a taxable person, exports of goods or services or both and inter- Stete supplies ofgoods or services or both rnade from the State or L5' nion territory by the said taxable person but exeléaes centraLtax, State tax, Union territory tam": integtated tax and cess; ,4e«51“.CL“:_,

(I13)“nsuatplace:of-residence?ineans— (a) in case of an individual, the place where he ordinar:1y resrdes, “(13):: in: other cases; the plasgyhere the person is incorporated or othemse legally constitnted;

(114) “Union territory” means _ (a) The Andaman and Nicobar Islands; (b) Lakshadweep; (c) Dadra and Nagsr Haveli; (d)DamanandDiu; (e) Chandigarh; and (0 Otherterritory; Explanation? For the purposes of this Act, each Of the territories specified in sub-clauses (a) to (f) shall be considered to be a separate Union territory. ' - ~ ~ ' « (115) “Union territory tax' means the Union territory goods and servicestaxleviedundertheUnionTerritoryGoodsand9 ServicesTaxAct; ' . _ (116) “Union Territory Goods and Services Tax Act” means the Union Territory Goods and SerVices Tax Act, 2017; (117) “valid return” means a return furnished under sub-section (1) of section on which self—assessed tax has been paid in full; (118) “voucher” means an instrument where there is an obligation to accept it as conSideration or part consideration, for a supply of goods or services and where the goods or services to be supplied or the identities of their potential suppliers are either indicated on the instrument itself or in related documentation, including the terms and conditions of use of such instrument; (119) “works contract? means a contract for building. constniction. fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovatiOn, alteration or commissioning of any 1111movab1e property wherein ttansfer of property in g00ds is involved in the execution of such contract; ' (120) words and expressions used and not defined in this Act but defined in the Integrated Goods and Services Tax Act, me Central Goods and Services Tax Act, the Union Territory Goods and Services Ta9x Act and the Godds and Services Tax (Compensation to States)‘Act shall have the same meanings as gssigned to them in those Acts. _ .

3. 4.

TheGovernmentshall,bynotification,specifythefollowing classesofofliceisforthepurposesofthisAct,namely:— (a) (b) (C) (d) (e) (f) (8) CommissionerofStatetax. SpecialCommissionersofStatetax, AdditionalCommissibnersofStatetax,1 JointCommissionersofStatetax, DeputyCommissionersofStatetax. AssistantCommissionersofStatetax,and anyothetclassofofficersasitmaydeemfit: Providedthat.theofficersappointedundertheManipurValue AddedTaxAct,2004shallbedeemedtobetheofficersappointed undertheprovisionsofthisAct. (1) (2) (l) (2) "IheGovernmentmay,inadditiontotheoflicersasmay benotifiedundersection3,appointsuchpersonsasit maythinkfittobetheofficersunderthisAct.‘ TheCommissionershall‘havejurisdictionoverthe wholeofthe.State,theSpecialCommissioner11ndan AdditionalCommissionerinrespectofalloranyofthe functionsassignedtothem.shallhavejurisdictionover thewholeoftheStateorwheretheStateGovernmentso directs,overanylocalareathereof,andallotherofficers shall,subjecttosuchcbnditionsasmaybespecified, havejurisdictionoverthewholeoftheStateoroversuch localareasastheCommissionermay,byorder,specify. Subjecttosuchconditionsandlimitationsasthe Commissionermayimpose,an01110::ofStatetaxmay exercisethepowersanddischargethedutiesoonhred orimposedon'himunderthisAct "AnofficerofStatetaxmayexercisethepanelsad disdiargethedutiesconferredorimposedunderthis ActonanyotherofficerofStatetaxwhoism tohim. Oflicers_underthisAct. Appointmentofofficers. Panasofoficers.

(3) (4) (1) (2) '(3) The Commissionermay,subjecttosuchconditionsand limitationsasmaybespecifiedinthisbehalfbyhim, delegatehispowerstoanyotherofficersubordinateto Notwithstandinganythingcontainedinthissection.an Appel1ateAuthority.shallnotexercisethepowersand dischargethedutiesconferredorimposed011anyother oflicerofStatetax. WithoutprejudicetotheprovisionsofthisAct.the officersappointedundertheCentralGoodsandServices TaxActareauthorisedtobe’theproperoflicersforthe purposesofthisAct,subjecttosuchconditionsasthe Governmentshall,ontherecommendationsofthe Council,bynotification,specify. Subjecttotheconditionsspecifiedinthenotification issuedundersub-section(1),— (a)whereanypmperoficerismesanorderunderthis ActheshallaisoissueanorderundertheCentral Goods'andServicesTaxAchasauthoxised'byflie saidActunderintimationtothejurisdictional officerofcentraltax; (b)whereaproperofficerundertheCentralGoodsand SeryicesTaxActhasinitiatedanyproceedingson asubjectmatter,noproceedingsshallbeinitiated bytheproperoflicerunderthisActonthesame subjectmatter. Anyproceedingsforrectification,appealandrevision, whereverapplicable,ofanyorderpassedbyanofficer appointedunderthisAct,shallnotliebeforeanoflicet appointedundertheCentralGoodsandServicesTax Act. Authorisationof oflieersofcentnlmxas9 properofiicerincertain circumstances.

7.(1) (2)

ForthepurposesofthisAct.theexpressionN'supply’ includes— (a)'all‘formsofsupplyofgoodsorservicesorboth suchassale,transfer,barter,exchange,license, rental,1easeordisposalmadeoragreedtobemade foraconsideration,byapersoninthecoutseor furtheranceofbusiness; (b)importofservicesforaconsiderationwhetheror notinthecourse orfurtheranceofbusiness; (c)theactivitiesspecifiedinScheduleI,madeor agreedtobemadewithoutaconsideration;and (d)theactivitiestobetreatedassupplyofgoodsor supplyofservicesasreferredtoinScheduleII Notwithstandinganythingcontainedin‘sub-mtion(1),- (a)activitiesorbansaeti'onsspecifiedinScheduleIII; or- (b)suchactivitiesortransactionsundertakenbythe 'CentralGovemment.aStateGovernmentorany localauthority'1nWhichtheyareengagedaspublic authorities,asmaybenotifiedbytheGovernment ontherecommendationsoftheCouncil, shallbetreatedneitherasasupplysfgoodsnorasimplyofservices. (3) Subjecttotheprovisionsofsub-sections(1)and(2), theGovernmentmay,ontherecommendationsofthe Council,specify,bynotification.thetransactionsthat aretobetreatedas—- (a)asupplyofgoodsandnotasasupplyofsemces;or (b)asupplyofservicesandnotasasupplyofgoods.

determinedinthefollowingmanner,namely:— (a) '(b) acompositesupplycomprisingtwoormoresupplies. oneofwhichisaprincipalsupply,shallbetnatedasa supplyofsuchprincipalsupply;and amixedsupplycomprisingtwoor111012sonicshah betreatedasasupplyofthatparticularsupplywhich attractsthehighestrateoftax. Scopeofsupply. Taxiiabilityoncomposite andmixedmliee

9. (1) - Subjectto the provisions of subsection (2), there shall Wand Collection- belevieida tax called the Manipurfioodsnd Saving Tax on all intra‘State‘ supplies of goatk 0pm or both, except on the supply‘of alcoholic liquorht ham consumption, on the vagnedetermined under sectim 15. and at such rates, not exceeding twenty per cent, as my be notified by the Government, on the recomm \ , ' .Of the Council and collected in such manner asim'aybe prescribed and shall be paid by the ténbl’e person. (2) The State tax on the supply ofpetroleum crude, high speed diesel, motor spirit (commonly known as Mr. natural gas and aviation turbine fuel. shall be levied with effect from such date as may be nofified'by theGovemment on the recommendationsof the Council. ‘ (3) The Government may, on the recommendations of the Council, by notificatibn, speeify categories of Supply of goodsorserVieesorboth,thetuonwhichshaflbepaid on reverse charge basis'by the recipient ofsuch-goods or servicesorbothahdafltheprdvisionsofthisAdshafl apply to such recipient as if he: is the person liable for paying'the tax in relation toithe supply of such goods or services or both. (4) TheStatetaxinrespectofthesupplyoftaxablegoodsorv services or bothbyampplier,whoisnotregistered.to a registeredpersonshallbepaidbysuchpmondhrevase chargebasis‘astherecipientandalltheprovisionsofthis Act-shallapplytosuchtecipientlsifheistheperson liableforpayingdneuxinrelafionmthemmyofmdx goodsorserviceeorboth. ‘ (5) 'Ihe Governmeut-may, on the recommendgtionsbf the Council, by notification. specify categories of services the tax on intra-State supplies of which shall be paid by , the electronic commerce operator ifsuch service: an ‘suppfiedthmughitandalltheprovisionsofthism shall appl‘fto such electronic commerce operator as if he is the supplier liable for paying the tax in'r'elation to the supply, of smsh services: ’ Provided that where an electronic commerce operator does not have a physical presence in the. taxable territory, any person representing'sueh electronic commerce operator for my purpose in the taxable territofy shall be liable to pay tax: .

Prtwidedfurtherthatwhen:anelectroniccommerceoperator doesnothaveaphysicaipmsenceindxeunfleterr'noryandhe doesnothavearepresentativeinthesaidterritory;suchelectronic commerceoperatorshallappointapersoninthetaxableterritory forthepurposeofpayingtaxandsuchpusofishallbeliabletopay tax. (1)Notwithstandinganythingtotheconuaryeomained'm thisActbutsubjecttotheprovisionsofab-sections(3) and(4)ofsection9axegisteredpasomwhooeagregate tumoverintheprecedingfinandalyelrdidnotexoeed .'3a.fifixxalmrupeemayopttopaxmneuomwmbk ‘byhhn,anamountcalculatedatsuchntzeasmaybe prescribed.,butnotexceeding.— (a) :3th (e) onepercentofthetumoverinStateincaseofa manufacturer, 'fioandahalfpercent-ofthetnrminStatein caseofpersonsengagedinmakingmppliesreferred toinclause(b)ofparagraph6of$chednlelf,and halfpercent.ofthemmoverihStateincaseof othersuppliers, subjecttosuchconditionsandrestrictionsasmaybeprescribed: ProvidedthattheGovernmentmay.by'notification,increase thesaidilififit’offifiylakhrupeestosuchhigheramount,not exéeedingonecrofetapes,asmayberecommendedbytheCouncil. (2)Theregisteredpersonshallbeeligibletooptundersub- section(1),if— (a) (C) (d) '‘11:) he'isnotengagedinthesupplyofservicesother thansuppliesreferredto inclause(b)ofparagraph 6ofScheduleII; heisnotengagetlinmakinganysupplyofgoods WhicharenotleviabletotaxunderthisAct; heisnotengaged“mmakinganyinter—StateoutwardL suppliesofgoods; heisnotengagedinmakinganysupplyofgoods throughanelectroniccommerceoperatorwhois requiredtocollecttaxatsourceundersection52; and heisnotamanufacturerofsudtpodsasmaybe notifiedontherecommendationsoftheCoundh, Compositionlevy.

4361961 . Provided that where more than one registered person ate having the same Permanent Account Number (issued under the Inme-tax Act 1961), the registered person shall not be eligible to opt fit the scheme under sub-section (1) unless all such registered pm opt to pay tax under that suh-section. , t. w .(3) (4) (5)' 11. Theoptionavailedofbyaregisttmdpersonundersub-section '(l)d1afllapsewitheffectfpomthedayonwhichhisw tumoverduringafinancialyearexceedsthelimitspeeified undersub-seetion(l). Ataxablepersontowhomtheprovisionsofsub-section_(1) applyshallnotcollectanytaxfromtherecipientonsupplies madebyhimnorshallhe beentitledtoanycreditofinputtax. Iftheproperofficerhasreasoustobelievethatataxableperson haspaidtaxundersub-section(1)despitenotbeingeligible, 'suchpersonshall,inadditiontoanytaxthatmaybepayable byhimunderanyotherprovisionsofthisAct,beliabletoa penaltyandthe'provisionsofsection73orsection74shall, mutatismutandis,applyfordeterminationoftaxandpenalty. (1)WheretheGovernmentissatisfiedthatitisnecessary inthepublicinterestsotodo,itmay,onthe recommendationsoftheCouncil,bynotification, exemptgenerallyeitherabsolutelyorsubjecttosuch conditionsasmaybespecifiedtherein,goodsorservices orbothofanyspecifieddescriptionfromthewholeor anypartofthetaxleviablethereonwitheffectfi'omsuch dateasmaybespecifiedinsuchnotification.' (2)WheretheGomnmtissafiMthatitkmy' hithepubhcmtuwwmdqhmyonthe recommendationsoftheCouncil,byspecialorderin ‘eechCasqunderciremcesofanexeeptionalnamre tobestatedinmchorder,exemptfrompaymentoftax anygoodsorservicesorbothonwhichtaxisleviable. (3)'lheGovernmentmay,ifitconsidersnecessaryor expedientsotodoforthepurposeofclarifyingthescope. orapplicabilityofanyndtificationissuedundersub— section(1)ororderissuedundersub-section(2).insult anexplanationinsuchnotificationororder.astheuse~ maybe.bynotificationatanytimewithinoneyearof issueofthenotification‘undersu‘b-section(l)ororder undersub-section(2),andeverysuchexplanationshall haveefi‘ectasifithadalwaysbeenthepartofthefirst suchnotificationororder,asthecasemaybe. Powertograntexunption fi'omtu.

(4) Any notification issued by the Central Government, on ' .. themcdmmmdatbnsoftheCoundLundersub-section ' ' (1) ofsectionllorordflismedunderaab-section (2)01” thesaidsection‘oftheCennalGoodsandServicesTaX/ Act shallbe deemedtobeanotifimtionornsthe case may be, an order issued under this Act. Explanation:—For the purposes of thissection. where an exemption in respect ofanygoods or services orbothfmmfliewholeorpart of the tax leviable thereon has been granted absolutely, the registered person supplying such goods or services or both shall not collect the tax, in excess of the effective rate, on such supply ofgoods or services orboth. '

----- supplyasiieterminedintetms oftheptovisionsofthis section. 12, (l) Thehabflitytopaytaxongoodsshallanseattheumeof (2) 'lhetimeofsupplyofgoodsslmllbetheeadierofthe foflowiii'gdateanamelyv (a)thedateOfissueofinvoieebythesuppIierorthelast 'dateonwhidiheisrequired,undersection3i,to issuetheinvoicewithrespecttothesupply,or ,(b)thedateonwhiehtheapplianceivesthepayment ~withrespecttothesupply: Providedthatwherethesuppheroftaxablegoodsreoeivesan amountuptoonethousandrupeesmexcessoftheamomindm in thetaxinvoiee, the time ofsupplyto theextentofsuchests amount shall, at the option of the said supplier, bethedate ofissueof inVoiceinrespeetofsuchexcess"amount., Explanation 1. — For the purposes of clauses (a) aiid (b). ‘snpply” shallbedeemedtohavebeenmadetotheextentitiscoveredbythe invoice or,asthecasemaybe, the payment. Explanation 2.~ For the purposes of clause (b), “the date on which the supplier receives the payment” shall be the date on which the paymentisenteredinhisbooksofaccount orthedateonwhichthe paymentiscreditedtohisbankaccounhwhicheveriseaflier. (3)Incaseofmpphesmrespectofwmchtaxupaidorhable tobepaidonrevetsechatgebwathettmeofmpply shaflbetheearhestofthefojlomngdatesmmdr— (a)thedateofthereceiptofgoods.or (b)thedateofpaymentasisentezedinthebooksof accountoftherecipientorthedateonwhichthe paymehtisdebitedinhisbankaceount,whichever ‘isearlier;or. ,(c)thedateimmediatelyfoliowingthirtydaysfi'om thedateofissueofinvoiceoranyotherdocument. bywhatevernamecalled,inlieuthereofbythe when Providedthatthit'isnotpossibletodeterminethetimeof supphrunderdausetahdause(b)orclause(c),thetirneofsupply shallbethedateofentrymthebooksofacconntofthereupientof supply 'I‘imeofsuppiyofgoods.

(4) Incaseofsiipplyofvnndlusbyaqplhthefimeof supplyshallbe— . , (a) the dateofisundechaifthesupplyis identifiable at that pain; a _(b) "the date ormamm another (5) (6) l3.(1) (2) cases. Whereitisnotpofiblemdmtbtineofupply under the. provisions of subfsedilll (2M (3) or sub—section (4), thetimeoquiyjal— (a) inacasewhereapefiodicdmhsbbefild .bethedateonwhichsuchmisbheMtr (b) inanyothercasebethedauondlidifllemis paid.‘ 'Dietimeofsupplyto.theextentitreh;smaaddiin mthevalueofmpplybywayofmbfieor penalty for delayed payment of anyconsiderdim shall bethedateonwhichthesupplierreeeivesadudmn invalue; Theliabilitytopaytaxon servicesslnllaxiaeatthetime ofsupplygasdeterminedintermsofthepewiionsof this section. The time ofsiipply ofservices Shallbetheeadbtd'flle following dates, namely:- (a) the date ofi's'siieOf'invoicebythesupplieLKthe invoioeisissuedwithintheperiodprescribednndet sub-seCti'on (2)"of section 31.,or the date of reoe'gt of payment; whichever is earlier; or (b) thedateofprofisionofserviceiftheinvoiceisnot issued within the period prescribed under sub- section(2)ofsection orthedateofreceiptof payment, wineheverisearhermr (c) the date on whichtherecipientshowsthereceiptof servicesinhfsbooksofaccburmmaasewherethe provisions of clause (a) orclause (b)donotappiy: Provided that where the supplier of taxable service receives an amount upto one thousand rupees in excess of the amount indicated inthetaxinvoiee,dietimeofsupplytotheextentofsufliemas amountshalhatflieoptionofthesaidsupplimbefliedateofiasue of invoice relating to such excess amount. Explanation :- For the purposes of clauses (a) and (b)- §w ‘thesupplyshallbed‘eemedtohivebeenmidemflle extentitiscovfiedbflheinvoiceormsflteaéemybe, thepayment; ‘ ‘ ' Trmeofsuyplyof

(ii) “the date , of receipt of payment” shah :he the date on which the payment is entered in the books of account of the supplier or the date on which the payment is credited to his bank account, whichever is earlier. . (3) In case ofsupplies in respect ofwhich tax is paid othable to be paid on reverse charge basis, the time of supply shall be the earlier of the following dates, namely:— a, A (a) the date ofpayment as entered in the books of account of the recipient or the date on which the payment is debited in his bank account, whichever is earlier; or (b) the date immediately following sixty days from the date , of issue of invoice or any other document. by whatever name called,in lien thereof by the supplier: mmmmmaafimmmmsm of supply under clause-(a) ordause (b), the time ofsupplyshall be the dateofentryinthebooksofawauntoftheredpimofnpply: Provided further .‘that' in case of supply by assodated enterprises, where the supplier of service is located outside India, the time of supply shall be the date of entry in the books of account of the recipient of supply or the date of payment, whichever is earlier. (4) In case of supply of Vouchers, by a supplier, the tiine of supply shall bg— I . . - (a) the date of issue ofvoucher, if the supply is identifiable at that point; or (b) thedateoftedemption ofvoucher, in allothercases; (5) Whereitisnotpossibletodeterminethetimeofsupplyof services in the manner speeifiedin sub-section (2), subsection (3) or sub-section (4). the timeof supply shall— (a)' inacasewhereaperiodicalreturnhastobefiMbethe , date onwhich suchtemmistobe-filedior (b) inanyothermsebethedateonwhichthetaxispaid. (6) The time of supply to the extent it relates to an addition in the value of supply by way of interest, late fee or penalty for delayed payment of any consideration shall be the date on which the supplies receives such addition in’value.‘ l4. Notwithstanding anything contained in section orsection 13, the timeofsupplygw‘here thereisachangein therateoftax in respect of goods or services or both, shall be determined in the following manner. namelyz- - (a) incasethegoodsorservicesorbothhavebeensupplied beforethechangeinrate oftan— . ' Changeinnteoftu inmspectofsupplyof goodsorseryicea.

(i) wheretheinvoice for the samehasbeenissued and «thepaymentisalso receivedatterthe changein rate often the time of supply shall b‘e‘the date of receipt of payment or the date ’of issue of invoice, whicheveriseadierwr (ii) where the invoice has been issued prior to the dnngeinrateoftaxbutpaymentisreceivedafter thednngeinrateoftanthetimeofsupplyshallbe the die ofissue of invoice; or (iii) vduethepaymenthasbeenreceivedbeforethe mmrateoftagbuttheinvoiceforthesame isismedafierthechangeinrateoftanthetimeof suwlyshallbethedateofreceiptofpayment; (b) inasethegobdsorservicesorbothhavebeensupplied d'uthediangeinrateoftan— , (i) wherethepaymentisreoeivedafterthediangein rateoftaxbuttheinvoicehasbeenissuedpriorto thednngeinrateoftaxthetimedsupplystnllbe “thedded'teoe'qtofpaymeImG ' 5.x. (wwwinvoieehsbeenismedmdpaymentis - receivedbeixethedmgefinmtedmfietime ofsupplyshallbethedateofreceiptofpaymetfior _ m.t-dateofissueofinvoicewhidieveriseuhe'nor (iii) where the invoicehasbeenissnedafterthechange inrateoftaxbutthepaymentisxeoeivedbeforeflie changemrateoftaxthetimeofsupplyshall‘beflie date of issue of invoice: ' Provided that the date of receipt of payment shall be the date of credit in the bank account if such crediti’in the bank'éaccount is - after four working days from the date éfchange in the rate oftax. Explanation:- For the purposes fit" this section; “the due of receipt of payment’shafl be the date on which the payment is entered in the books of accounts of the supplier or the date on which the payment is credited to tits bank accounts whichever is earlier. 15. (1) The value ofa supply ofgoods or services or both shall Vdueofmbk WPPIY. be the transaction value, which is the price actually paid _ or payable for the said supply of goods or services or :_ both-where the supplier and the recipient of the supply are not related and'the price isthe sole consideration for the supply. . ' (2)Thevalueofsupplyshallinclude-

(a) any taxes, duties,- cesses, fees and chaps levied underanylawforthetime‘beinginforceotherthan this AettheCen‘tral GoodsandServieesTuAet and the Goods and Services Tax (Compemation to States) Act. if charged separately by the supplier; y (b) any amount that the supplier is liable to pay in ' relauantosxfisnppiybutwlhehhasbeenmeuned by the reelplentgof the supply and not included in the price actually paid or payable foi' the goods or - *: services or both; 2e ‘ (c) ' incidental w ", including comriiission and packing, charged by' the supplies to the recipient .ofasupplyanyammmtcharged forahythingdone bythesupplierinrespectofthesupplyofgoodsor servicesorbothatthetimeof,orbeforedeliveryof goodsorsupplyofservices; .(d)interestorlaefeeorpenaltyfordelayedpayment ofanyconsiderationforanysupply;and (e)subsidiesdirectlyhnkedtothepriceexcluding subsidiesprovidedbytheCentralGovernmentand StateGovernments.,‘

Explanation:-F0rthepurpOSesofthissub--section.theamountof subsidyshallbeinclhdedinthevalue'ofsupplyofthesupplieswho receivesthesubsidy. (3) (4) (5) Thevalueofthesupplyshallnotincludeanydiscountwhichis given—_. (a)beforeoratthetimeofthesupplyifsuchdiscounthas beendulyrecordedintheinvoiceissued'mrespectof suchsupply;and- (b)afterthewpptyhaahoenefl’ected,if- (i)suchdiscountisestablishedintermsofan agreemententeredintoatorbeforethetimeofsuch and (ii)inputtaxcreditasisattributabletothediscounton thebasisofdocumentissuedbythesupplierhas beenreversedbytherecipientofthesupply. Wherethevalueofthesupplyofgoodsorservicesotboth cannotbedeterminedundersub-section(1),thesameshdlbe determinedinsuchmannerasmaybeprescribed. Notwithstandinganythingcontainedinsub-section(1)or sub—section(4).thevalueofsuchsuppliesasmaybenotified bytheGovernmentontherecommendationsoftheCouncil shallbedeterminedinsuchmannerasmaybepresa’ibed.

Explanatton- For the W d“ All;- ‘persanShaubedmdtohie‘ I I f- (a) (b) (a i-. F: vii. such'persons are ofic‘en o: «bani- .mha's _businesses; such persons are eniisloyer and flip: any persondirecflyorinlflredlynubcuds twenty five per centormotedthflwfing L,stockorsharesofbothofthem; one of them directiyorhi’directlyen—ltiedhn; both ofthem are direetlyor mm». thirdperson; together they directly or indirecflyculdatflllpm Ol':-:7 viii.theyaremembers'ofthesamefirmly;A the term “person? also includes legal persons. - persons who’are associatedinthebusinesofo-e-nths in that one is the sole'agentor sole am «- ode concessionaire, howsoever described, of the hflur. H be deemedtoberelated.

WV INPUTTAXCREDIT l6.(1)Everymguteredpersonshakwbjecttosuch‘m andresmctxonsasmaybepmcribedmdmthem specifiedmsectton49.beentitledtomkecreditofinput taxchargedonanysupplyofgoodsorservicesorbothm himwhichareusedormtendedtobeusedinfliecourse orftmheranceofhisbusinessandthesaidamountshall ‘.becreditedtotheelectmniccfeditledgerofsuchperson. '(2)Notwithstandinganythingcontainedinthissection,no personshanbeenufledtothecreditofany' mputminrespectofanympplyofgoodsormcesor bothtohimunless,—, (a)heisinpossessionofataxinvoiceordebitnote issuedby'a'wpplicrregisteredunderthisAct. ormchdthertaxpayingdocumentsasmeybe (b)hehssreceivedthegoodsorservicesomboth. Explanationr—-Forthepurpos'eof’this’daune,it~sinfl-bedeemedthat flieregisteredpersonhasmemdflsegoodswherefliegoodsare deliveredbythesnpphettoarecipientoranyotherpersononthe dimcfionofsudireglstemdpemomwheflieracfingasanagcntor' othemisqbefoxeordufingmovementofgoodseitherbywayof transferofdocumentsoftitletogoodsorotherwise; (c)subjecttotheprovisiom-ofsection41,thetax dmgedinrespectofwchwpplyhasbeenachnfly psidtotheGovernmenLfiberinMOt-thsough mammmmmm- ofthesddlupplyssnd_ _ . '(d) hebasfiimishedthetetumfiudersectidiiflt' vaidedthstwhuemegoodsagsinstaninvoicearereceived mlouorinsullmmmflnregimdpersonsimnheenfifledtomke credituponreceiptofdlelastlotorihmument: vaidedfiirflierthstwherearecipientfailstopaymthe supplierofgmdsorservices-m'both,otherthanthempplieson whichtaxispaysbleonreversechargebashtheamounttowards tbevalueofsupplyalongwitbtaxpayablether‘eonwithinaperiod ofonehundredanddghiydeysfi'omfltedateofissueofinvoiceby thesupplier,anamounteqtnltotheinputmcreditsvsfledbythe mpmntshanbeaddedmhhmnpnmflsflimdongwnhmtemt thmominsuchmannerasmsybeprescribed:. mildwndifiom hHI-riwm

436E1961'L, -17. Provided also that the recipient shall be allied to ad of the credit of input tax on payment made-by limit“ wards the value of supply of . goods or services oi bah h! wih tn payable thereon. (3) (4):; . seeds onservices orbothafterduedaeofinihqcf (l) 5shallnotbeallowed. Where the registeredpgsanlnschndhmm thetaxcompenent 9f the cost qfcqfldpob all pan and machinery under thepmviflmdfiem Act. 1961. the inputtax aéaitqpfiudpm Are glistered person shallnotbeent'gledwq‘tu credit in respect of any invoice or debitnochqflyd’ the return éuhder Section g9 for the moiih d'Sqdrx following the" trait of fifiancial tear to. -Ihid- ad! inv‘dice' 6r ii'fi'roice relating to sfichdebit net prim or furnishing of the relevant annual return. vrlidsaer ’3 earlier. ‘ ‘ ' » ‘ Where the} goods or serine‘s or both are used by the registered person partly for the purpose of any m: and’paxflyz-fot other purposes, the amount d’credi dual _ be restrictedvto so much of the. input tax as is m ‘to the Pm“? of his business. (2) Where the gdods 0r services or both are used In the registered person partly for efl’ecting usable stub including zero-rated supplies under this Act or mder the Integrat‘e‘d'Goods and Services Tax Act and path for effecting, amph- supplies under the suit! Am the ' amount ofiexeditelfili be restricted to so much cfthe (3) (4) ,- inputtax as is attributable to-the said taxable studies ; including zero-rateq supplies. The value of @th supply under subsection (2), shall be such as may be prescribed, and Shall induk snafu: on whi‘éhé‘flieirecipient is liable to pay tn on m charge basis, transacflonsinsecufifiessaleofhndad. ‘ subject‘to clause (is) ofparagraph of Scheditle II, sale d building; ' ’ A‘hanking company or a financial institution Wig afionrhagkmsfinanciai company.§nsae=d in mine services by Way of aecepting deposits. extendingloam or advances shalI have the option to githeg eqmply with the provisighs 6f sub-section (2), o'r‘hvai'l of, every ninth, f an amotmt equal to Wine? cent. '0me eligible input tax

creditoninputék italgoods‘andinfihtséivicesindnt month and the " ' f “ "‘gha'H-‘lap’se: 1:13 4, Apportionmentofcredit andblockedcredits.

- ' 'f i375“? a; ’ , Provided that the option once energised shall not be withdrawn during the remaining partrof the financial year: .‘j Provided furtherthat thegggggtion of fifty percent shall not apply to the tax paid on supplieg. mgde by one registered person tpiapother regiStereélppersoh havpg the same Permanent Account "Number. ' ‘ m ‘ ' (5) NotWithstanding anything contained in sub—section (1) of section and sub~section (1) of section 18, input tax- " credit shall nOt be available in’respect of the following, namely:- (a) motor vehicles‘ignth‘tither conveyances except when theyareused— (i) for making the followmg' taxable supplies, l .__ (A) furthe’rsupply of sud: vehicles or comyancagm' (B) fianspomfion 013mm" ”or ' (C) mgmt ,mimng 0” driving, , flyingnavxgatmg .,§uch vehicles or conveyances; ‘ (ii) for hanqurtation ofgoads; (b) , the following supply of gbods or services or both:- _ (i) food and x: beverages, ,outdoor catering, beauty treatment, health services, cosmetic and plasticrsiu’gerx except where. an inWard supply of goods of services or both bf a particular, ,étegory is used, by ‘4? resistered person formakmg an outWard taxable supply of the same category of goods of services for both or asan element of a taxable composite or mixed Supply; - - _ (ii) member'ship pf a club, health and fitness V centre; ..»

(C)- .plantandmaehmery) exceptwhereitisaninput (d) (iii) rent-a-cab,1ife inmrance and health - msuranceexceptwhm- (A) tli'e‘Gd'yemme‘nt nmifls the services whichareobligatoryfilranemployerto * pféfidetoftsemployeuunderanylaw “fdrfliehmebemgmfixuqor “E(B) 'suchmwardsupplyofgoodsorm orbothofapartiwlarcategqryisused by a registered person for mking an ‘ :‘outward taxable supply. ofthe same "Vcategoryofggodsorservicescrbothor aspartofataxableeoinpositeormixed .snupplxsandfi (iv) teaveltrbenefite extended to employees on vacatien such as leave or home travel concessions . workscontractserviceswhenstudiedfor ’construction of an immovable property (other than t,» service for fiitther supply of works contract service; goods, at sefwoes or both received by a taxable person for construction of an immovable property (other than plant or machinery) on his own account including when such goods or services or both are ?;nsedinthecourseoffurtheranceofbusiness Explanation: ~For the purposes (if clauses (c) and (d), the expression construction”includes reconstruction, renovation, or alteratiohs or repairs, to the extent of capitalization, to the said immovable property; ‘ ,, .,, Lie) (0 (s) (h) (i) geods or” giants, both on" which tax has been paid under sectionlO; goods or services 61' bbth receivedby a non—resident taxable person except on goods imported by him; goods or services or both used for personal consumption; ' gobds lost, stolen, destroyed, written otter disposed of by way of gift or free samples; and any tax paid in terms of sections 74. and 130. (6) The Government may prescribe the manner in whidi the credit referred to in sub-sections (1) and (2) maybe attributed.

Explanationk For the PW at this Chapter and Chapter VI, the expression “plant and machinery meansappamtus, equipment, and machinery fixed to earth by foundation or structural support that are used for making outward supply of goods or services or both and includes such foundation and struemr‘alsupports but excludes- ' , (i) land, buifdmgoranyothercivilstructures, (ii) telecommunication towers; and , . (iii) pipelines laid outside the factory premises. e (1) subject to such conditions and restrictions as may” be ‘pIeseribede - V‘ V siziix’r (a) a person: who has applied for registiation under thisActwithinth‘n’tydaysfrom'thedateonwhich he becomes liable to registratiOn and has been grantedsuchregistrationshallbeemitledtotake creditofinpmtaxinrespectofinpmhddinstock _ mdmpmscmnmrimmfinflwdam ‘: ‘'hmmwhflihebeoomeshable tnpaytaxundeethepmvmonsofthism » ib)a9618011Whotakesxegistratidnundensub-uetion

‘ x , -:(3) ofseetionzsshallbeEenfifledtotakecreditof‘ ., puttaxinrgsxtpctofmputsheldinstockand' .1-inputsoontamed-iasemi-finishedorfinishedgoods t. gheldinstockgnthe dayimmediatelyprecedmgthe M: date of- grant of registration, :, (c) where any registered person ceases to pay tax - " under section 10, he shall be entitled to takepmdit :ofmputtaxmrespectofmputsbeldmstock. inputs contained in semi- finished or finished goods held' in stock and on mpital goods on the dayunmediatelyprecedmgfliedatefromwhichhe '1 becomes liable to pay tax tinder section 9: Provi (ed that the credit on capital oods shall be reduced by such percen e points as Inay be prescribed, "s;

(d) wherefian Exempt supply of gpods n; seryices or . both by a gegstered peglpn hewmes a taxable . ,. nippjy, such person shall ‘ entitled to take credit

,,,,, ’ ‘ inputs contained' in semi-fimshed or finished goods 'held' in stock relatable to such exempt supply and onespitaigendsexdusiveiyusedforsuchexemm ,supplyonthedayimmediatelyprecedingthedate'. . Ad , from which such snpglybedomes taxablez, Availabilityofcreditin spedalcixtumsm

,,ProvidedthatthectetIit-bnWsunberednwdby, such percentage points as maybeptficflbed- , .(2)_ '(3) (4) Aregisteredpeison‘shallnotbeentitledtoat:wtax creditundersub-section(1)inrespectofayguiyofgoods orservicesorbothtohimaftertheexplryrmeyarfmmthe

dateofissueoftaxinvoicerelatingto""supply. Wherethereisachangeintheconstitutionofaregistered persononaccouhtofsale.merger,demerger,umlgmfltion, leaseortransferofthebusinesswiththespecificpnw'siomfix transferofliabilities,thesaidregisteredpersonshallbeallowed totransferthemputtaxcreditwhichmainsunutilisedin ‘his electroniccreditledgertosuchsold.merged,mud, amalgamated,-leasedortransferredbusinessmsud:unmet asmaybeprescribed.-. Ii ‘Whereanyregisteredpersonwhohasavailedofinputtaxcredit optstopaytaxundersectiOn10of,Wherethegoodsorservices I'orbothsuppliedbyhimbecomeexemptabsolutely,heslnll payanamount,bywayofdebitiiitheelectr'oiiiccreditledger orelectmniccashledger,equivalenttothecreditofinputtax inrespectofinputsheldinstockandinputscontainedinsemi- finishedorfinishedgoodsheldinstockandoncapitalgoods. reducedbysuchpercentpointsasmaybeprescribed,on .-thedayimmediatelyprecedingthedateifexercisingofsuch optionor,asthecasemaybe,-thedateofsuchexemption: Prefidedthat‘afte’r'paymentofsuchamount;thebalanceof inputtaxcredit,ifany,lyingmhiseleetmniccreditledgershalllapse. (5)Theamountofcreditundersub--se¢tion(1)andtheamount (6) payableundersub-sectioh{4)shallbecalculatedinsuch mannerasmaybeprescribed.' IncaseofsupplyofcapitalgoodsorpIantandmachmery,on whichinputtaxcredithasbeentaken,theregisteredperson shallpayanamountequaltotheinputtaxcredittakenon' thesaidcapitalgoodsorplantandmadnneryreducedby suchpercentagepomtsasmaybefirescnbedorthetaxonthe :transactionvaliieofsuchcapitalgoodsorplantandmachinery determinedundersectiqnlswhicheverIShigher. Pmdedthatwhererefractoryxbmks,mouldsanddies,)igs andfixturéiaresuppliedasscrap,thetaxablepersonmaypaytax onthetransaetionvalueofsuéhgoOdsdeterim'iiedundersectionlS.

l9.('1) ;<22 _ credit oninputs sent to a job-worker for job-wonk. ?‘37 ‘Ihe principal shallf subject to V suehjcondmohs find restrictions as may be prescribé’ii, behiféwedinfilt tax ‘) NewsStandmganythngfita‘ifiédmdafigéfilfl" section (2) of section 16, the pmicgral shall beieiittified tn take credit of inputtax on‘ inputs iijif the inputs are '3 directly sent to a job Worker for onfLWéifk withbut‘being (3) _ first brought to his place of business. Where the ifiputssent’ for job Work are not received back by the Brincipa‘l after completion of ‘job-wozk or otherwise or are notsuppliegi from the place of business of "the job worker in accofdaiice with clause (a) or clause (b)of sqb-section (i) of section 14.3 within me year of being sent but, it shall be deemed that‘such innit; had been supplied by‘the principal to the job-worker on the 5-daywhen the saifl'inputswm sent out: ' Provided that where the inputs are sefit'direcflyito a‘job ‘wOrker, theperio‘a of one year shall beimmmd frbitiithe dhte of A receipt of inputs byt’the job wbrkét». ' - J ' ’ (4)_ 5‘33:‘' The principal shall, subject to such eohditions and 'iestrictions as may be prescribed, be alloyiEd input tax ‘if Credit on capital goods sent to a jobWorker for job work. (5) .{fiétéiihmdmg anyflmm‘ ”g mm in clause (b) ofsub- section (2) .of seqh'on 16, the principalshall be entitled to take credit of input tax on capital goods even if the Lcapital goods are directlyfiént to a job werker for ”job- . ; Work withoutbeingfirstbfbughftdhisplaée ofbusiness. (6);” Provided that where the capital goods are sent directly tga job worker, the period of ' thxee years shall be counted from the 32m of ' Where the capital goods sent for' job work are not received bad: by the principal within a period of three years of being sent out!» it shall ,beideemedtthat such .ymcapital goods had beemsupplied by the principal to the _ job worker on the day when the said capital goods were sent out: j . _ ‘ receipt of capital goods by the job worker; (71“; . Nothlng tcpn‘tained- in.sub-section;l(3)g9£§§::h;:se¢:tion (6) shall apply to hxpuldsgandiciies,rjigs aiidfixtures, or tools sent out to a job wbrkei' for job whirls~ Taking input tax credit in respectofinputssentfor jobwork.

EsplanationejForthepurposeofthissection,“principal”meansthe flyersonreferfedtoinsection143.' 20.(l)TheInputSavioeDistfilmmrshalldistributethecreditMnnncrofdistribinion ofsentenxammamaedmandhmgmedofcreditbylnpfltSerVice ‘mxamdpxqmmbymyofimeofMW documatmtheamountofiqlutincredit beingdisuiudh-chmasmybelxacfibed. (2)mmmmmmgm .mmflnmmuflr— {1)theceditanbedistinct]tothereapienfsof ’--'qeditwa(ham«miningsuchdetails » -asmlybe I(bI)theamumdtheaeditdmhmddiaglnmqmed ;theamonfitofqeditavaihblefordistnbuiion; (c)thecreditoftaxpoidoniqmtserviceuttributable toarecipientofaeditshallbedistributedonlyto thatrecipient;a (d)thecreditoftaxpmdonmputservmatm‘butahk tomorethanoneredpientofaeditslallbe distributedamongstsuchrecipientstowhomthe inputserviceisattributableandsuchdistribution .shallbeprorataonthebasisofthetumovetinaState 'orturnoverinaUnionterritOryofsuchgeapient, duringtherelevantperiod,totheaggregateofthe turnoverofallsuchrecipientstowhomsuchinput serviceisamibtitab'le'andwhichareoperationalin -~thecurrentyear,duringthesaidrelevantperiod;I (e)'thIIe'I‘creditoftaxpaidoninputservicesattributable \to'allrecipientsof‘creditshallbedistributed amongstsuchrecipientsandsuchdistribution'Shall beprorataonthebasisoftheturnoverina State orturnoverinaUnionterritoryofsuchrecipient“ dmingtherelevantperiod,totheaggrbgateofthe turnoverofallrecipientsandwhichareoperatic'mal inthecuttentyear,duringthesaidreleyantperiod. Explanation:-Forthepurposesofthissection,— (a_i‘the“relevaatperiod”shallbeI-I (i)iftherecipientsofcredithaveturnoverintheir States01'Unionterritoriesinthefinancialyear preceiiihgtheyearduringwhichcredit"istobe distributefithesm&financ1alyearor'"'

~21. (ii) if some or all reupiehts of the credit do‘not have any nunovei-f‘ili theirSmtes or Unibn tem‘tories in ; v the financial year preceding the year during which the credit is to be distributed. thelastguarter for _,I (I Whichdetaflsofsitehtgenoveeofalltheredpients ' ‘ are available, prefiii’usto the month during which ,éreditstobe'dissms (b) the expression “ieeipient oig eredit' means the supplier of goods or services or_both havingthe same Permanent ‘ Account Numbeeasthatofthe Input Service Distributor; (c) - the terin ‘tumowr‘ *ih‘a‘ehttion t6 any‘registered person engaged in the supply of taxable goods as well as goods ‘ not taxable under this Act, means value of turnover, reduced by-rthe’ amount‘bf any duty orltax levied underent'ryuofljstlofthe‘SeventhSdieduletothe ConsfinmonandalrySIandfloffistnofdaedd Schedule. mmmfim"toms;-m4m-mzo :mum,.

fl ,awmeforme

recipients ofaedit.’ " ' themes: ' credit QSW j ' " shall be recovered from such recipients along with. interest, and 'the provisions of section or section 74, as the case may be; shall mutatis mutandis apply for determination of amount to be feqoveted;I lhnerofzeeovuyof aeditd'ltflnmdin

'22.(1) ~CHARTER:Y1 Inssmttsnon IIsS Everysupphermalngga‘taxablesuppiydpodsor servicesoi'bothmtheStateshallbehabletobenylued underthisActifhisaggregateturnoverinaEm! yearexceedstwentylakhrupees: Providedthatwheresuchpersonsnakestaxablesuppliesof goodsorservicesorbothfromanyofthespecialcategotysmhe shallbeliabletoberegistered1£hs§3aggregateturnpvetinnlingual yearexegedstenlalthmpees.<2

Eyerympphetmakingktaxablesupplyofgoodsorservicesor bothfmfltheState,shallbehabhtobe:egisteredunderthisActifhis aggregateturnoverinafinaneialyeuexceedstenlakhrupees.' (I2) (4) Everypersonwho,onthedayimmediatelypreceding atheappointeddaysregisteredorholdsalicenseunder anezdstinglaw,shaHbeliabletoberegisteredundea'this Actwitheffectfromtheappointedday. ‘Whereabusmesscamedonbyataxablepason mg'SteRdunderthisActisuansferreiwheflieton accountofsuccession orotherwise,toanotherperson asagoingconcern,thetransfereeorthesuccessor.asthe casemaybe,shallbeliabletoberegisteredwitheffect fromthedateofsuchtransferorsuccession. Notwithstandinganythingcontainedinsub-sectiom (1)and_(3),.inacaseoftransferpursuanttosanction of aschemeoranarrangementforamalgamationflor,as 'the casemaybe.de—mergeroftwo0:morecompanies pursuanttoanorderofaHighCourt.Tribunalor otherwise,thetransfereeshallbeliabletoberegistered. witheffectfromthe.dateonwhichtheRegistrarof Companiesissuesacertificateofincdrporationgiving' effecttosuchorderoftheHighCourt. Explanation:—Forthepurposesofthissection,— (i) (ii) theexpressionaggregateturnbvershallincludeall7 suppliesmadebythetaxableperson,whetheronhis ownaccountormadeonbehalfofallhisprincipals; thesupplyofgoods,aftercompletionofjob-work,bya registeredjobworkershallbetreatedasthesupplyof 'goodsbytheprincipalreferredto insection143,and thevalue.ofsuchgoodsshallnotbeincludedinthe aggregateturnoverofthe'registeredjobworker. Personsliablefor registration. OnlyinSGSTIzwfor specialcategoryStates wiinnthepmviso

41, (iii) are expression Whetégory States" shall mean the ' 1'»; Sumsasspeafiedinfinhvddusewofdauseflhfamde :ff * ‘ 279Aoftfieconstimr§n ‘7 (l) Thefiifirmngpersqnsshallnothehahfetoregistran Perm-milleh namely:- 1:43; (a) anyperson ' inthebusinessof alpplyinggmdsprservicesorboththatarenot. liablétotaxorsvhollyexerpptfromtaxunderthis Act or under the Integrated Goods and Services TaxAct; . ' 1:39;”: (h) anagriculturist t6 the extentofsupplyof 'f’ ' ‘ ornofcdtivatron ofland. (2) The Government may, on the recommendations ofthe Whymdfiammspeafydieategoryofpemm whomaybeexemptedfrunobmmmgreglstrationunder thisAct. 311K325 1’ 31': ' MW in sub—section (1) of. Compulsoryregistration “CHOP 32-4119 Mowhgmonesotpmlndemhng inceminensu. . taxablesupphesshallberequrredtoberegrsteredunderthis V Acn- . (i) persommlunganyinterStatemahlesupply- (it) casualtuabiepersonw %i (iii) personswhoaterequiredtopaytaxunfierreversecharge, ’ (iv) person who are requn‘edto pay tax under subsection (5) ~ ofscctionfi: a , x (v) non’mident taxablepersons; ' » . ' (vi) personswhoarerequrredtodeducttaxundersecuonSI whetherornotseparatelyregisteredunderthrsAct; , ,:. (vii) personswhosupplygoodsorservrcesorhothonhehalfof , othertaxahlepersonswhetherasanagentorotherwrse, (viii) input servicem Whether or not separately WunderthisAct: - (he) penohswhosupplygoodsorservrces orhath other than supplies specified under sub-sectic’m (S) of section 9, through such electronic commerce operator who is; reqhiredtocollecttaxat source undersection ' Wk) everyelectronrc commerce operator, , (xi) every person supplying online informationand data hase accessor servicesfmmaplnceoutsidelndtatoa personm otliuthmaregrsteredpusomand _,» (nflsuchotherpepqnorclmofpersonsasmeybenonfied :. by the 1,} ,thermommendationsofthe Council “ "

‘ 43ofl961 4.2 25. (31333.333 Ever; Pfif§9§ MIDAS liable to be regsteredghdel; section ,3; 33. 2.20;; section 243.5%“, finreglstrahen within thirty days fr6m the 3on3 which he;bee'pmes liable , to registration. in ad mannaand3 subJect to such conditioh‘a as may $1er ‘ II 3f; :1! Previ6%d that a cas’ual I or ’anon-resident taxableéfierson shall apply for re ' the connnencementofbdsfiess I : f. mawéemnwhomakesawp lggrplnthetantenal tamregstgationm tatewhaethemrest point ofthe appropriate baseline ls Iocat in the State. . . in: ~ in. met 2‘ a ~ arms (2) A {lessensedan? ‘ '" grantedasfigk“°i‘“ (3) Provided that a person having multiple business vatialls indie State maybegranteéas use for eachbflsinesswrtieal maefitflsfiEheo %may ii? be prescfibgd. ifs-“£2.53 432.; (3) Aperson,thouglinotliabletoberegisteredundasection of semen: mayget himsdf tegmered voluntarily, and allprovisions ofthisAet. 35me a registered person, shall apply to such _ , L—rK-‘flfl" (4)“ '-:‘Aperson who hasohtamedoris reqmredtoobtam more than one registration, whether inbile State or Union ' Territory ormore than one, Shalom Union memory shall, ,3 in respect efeaeh suehreglstrgtien, betreatedas distinct persons for the purposes “it!“ Aet. ('5)‘ Where a person Whohas‘oeta‘fnea 6fis retjulrefl to obtain I , registration inaState orUnion territory ill reaped ofan j establishment, haSani esfilflirmnt in another State or ' ' Union territory, then such establishments shall be treated .. asestablishments of distinet persons fondle purposes of this Act. , , . 5-317 E35: (6) Every person shall have a Permanent Apeeunt Number issued under theIncome—tax Act, in order3 to be a?” eligible for grantoih‘eglstrafi thatap so‘n qulfd eduitt‘afi'underseetlon Slmay have.I in Iieu to?“ a Permanent AccountLfiufia, aTax Deductréh and (Selleetion fieeomt’i‘lifinhel’“ " ' ~ I Act' in ordei’ febe eligible for gt’aIilt of Iégigfiafld I I ‘j 9,; «vi L10») Procedure for _ Registration.

(I 5‘43 #3 my; irfils (7) thwithstandin anything {3113sz -section (6), a non- resi ent , grain may be, granted ' registration under Sigh-section(1)911 itheybasis of such other ociimentsaas may be preset: bed. 7. (8L Mgr;aperson when liable togbegegistexed under this t; 3,3Actsfails to obtainregistratign. the proper oficer may, swathput prejudicg to, any action which may betaken if underflusActorunderanyoflierhwforthenmcbemg in £orce, proceed igregister such person in snehmmer m"- H a; run, qt» rawmqtid‘n} (9) Notwrthstanding anything contained in sub-section (1),— (a) any spéaahzed agency of theUnited Nations Organinition or “any minim Pimi'iéial InstitutionandOrganiutionnntifiednnderthe Unitedflmonsmandm)kt. 2194? ConaMorEmbassyoffirdgneounuies; and . 3f; 3§3:3|: 311314-523 “(b)'¥- any other person or class of persons, as may be notified by the Commrssxoner, ’ ' shall be gxgnted a Unique IdentityNumber' in such manner and for such purposes, includingrefund oi taxesonthe notified supplies of goods or: sexvicesprboth received by them, :as maybe prescribed, (10) The registration orthe Unique mews; ber Shallbe»; granted or rejectedafter due vitrification in such manner andwithin suchpgmdas maybeprescribed. , (11) A certificateof registration shallbeissued'in suchform and with effect from such date, as may be- prescribed. (12) A registration of an Uniqueiidentity Numbershall ‘ be déemEdto have béert‘ granted aftet the expiry of tlié period prescribed under sub- section (10), ifno defiaency hasbeen communicated“in theapplicant within that period. (1) The grant ofregistratioti or the Unique Identity Nurtrber . fider the Central éoods and Séxvices Tax Au shall “ a Roi registration or the Unique. Identity Numbgrenngreipfliis Act subjgct to;_the condition {hat the application for registration orthe Unique Idefldty Whit? hasnot been’i‘thted underthisAct Within”the tinié‘i spherfied iii'siiiii section (it?) of section 25. Deemed Registration

(2) Notwithstanding anything contained' un sub-section (10) of section Zfi‘anx rejectuon ofapplication for registration' ortheUnuqufldentityNumberundertheCentralGoods andSsvicesTaxActshallbedeenuedfobearqecuonof application for re‘iustfatzan unilerthis Act. (I) 'Iheosnfieiteofregustration ussuetlbamhlhnhle person ora non—resident taxablepershnihalbevahd -forapsuodspeefieduntheapplicauoui firregisinfion arninetydays from theeflbctivedate‘ofrefiluatuon. wherandsachpersmmmzble supphesor‘, AWcsfifia-atetuf Provi" .2 dad thatthe proper officer may, ohsaficient “use. being shownbythe said taxable penonextend the saidpetiodot'ninety days hya furtherperiodnot exceedung nmetydays. (2) A casualtaxable person or a non-residenttaxiie , person shall, atthe time ofsubmission of applmuon fist registration under sub-section (1) ofsodium 25. nuke an advance deposit of tax 111an amount equivalent) the estimatedtax liability of such person for the psiod be ' which the registration us sought: ., Provideddrat where anyextension as tinie‘lis soamt with: s-ubsectio‘n (l), shch taxable pefsén shall Wabash-nu amoant’oft'axequivalenttothe estimatedtaxliabilityofstudipssm forthepenodforwhuchthemeasionlssoaght. , : (3)- The amount deposited under sub-section (2) dialbe creditedtothe electroniccashledgsofsadipssnnand shall be utilised unthe manner provided andssection ' 28. (1) Everyregistered person and a person towhoma - Unique IdentityNumber hasbeenassumedshlllinfiuun the proper officer of any changes in thebum -furnishedatthe timeofregustratuonorsuheeqasl thereto, uh such form, manner and within such psiul as may be prescribed. .. (2) The proper officer may, on the basis of inform f furnished under sub- section (If a:as unstainedby '5“ him, approve or reject amendments in the "“3 j particulars in such maths and Withun such period a ‘ ”i” maybeprescnbed. ' Provided that appmufal of the propernfiies “mt be required in respect of amendment ofsuchparticularsaa my be prescribed: Special provisions relating to casual taxable person and non-resident taxable person. registration.

29. ’45 .3“, Prowded further that the proper ofiicer shall not reject the apphtation for amendment in the registration particulars without giving the person an opporthnity of being heard. . i (3) Any rejection or app “I, Central GoodsandSerVicesTax Act shallbedeemedto . fih‘n filof amendments under the be a rejection or approval under this Act. (1) The proper officer may, either on his ownmotionoron .7“?" (2) The proper oHicer niay cancel the registration ofa person v an application filed by the registered person or by his legal heirs, in case of death ofsuch person, cancel the registration, in such manner and, withinsuch period as may be prescribed, having regard to the circumstances thre,4 ‘ . (a) fiebunnesshabemdmnnmeduansferredfully *for any ream indndiiig death of the proprietor. ,malgamatedmfioflnhgalumtxdanagedor otherwfieWof-or -~ --- (b) there is any change in fie Constitutmn of the business; or ‘ ' . (C), the taxable person, other thantheperson registered ’" under sub-section (3) ofsection 25, isno longer, liable to be registered under section 22or section , . fromsuch date, including any retmspective date, ashe may deem fit,where,- (a) the registered person has contravened such . provisions of the Act or therules made thereunder as may be prescribed, or (b) ‘a person paying tax under section has not ' furnished returns foir threefeonsecutive tax periods; ' 01’ (c) anyperson, otherthana person specified in clause ‘ (b), has notWedreturns for acontinuous period of six months; or 7.‘*(sl)._ any person who hasiakengyoluntary registration under nib—section ($3); of; section 25has . not commenced business within six months fromthe dateof registration; or mate) i, registration has béenobtained by_ fneans of fraud, “5‘ Wiflful' misstatementor suppression of facts. Prbv’ided thatthe proper- ‘ofiicer shallnot cancel the registration without giving the person an opportunity of being heard. Cancellation of

(3)" The cancellation of registration underthis section shall notafl'eettheliabilityofthetaxablepersontopaytaxand ; other dues undenthis Act orto e any hpligation {K} under this Act or. the roles thereunder for any (4) A (5) period prior to the date ofcancellation whether ornot such taxand other dues are determined beforeor after ' .1 the date of cancellation * The cahcellation of registration under theCentral Goods ' and Services TaxAct shallbedeemed to be a cancellation ' "oi’registration under this Act. "35.7 Everyaegistered person whoseW is cancelled A shall payian amount, byway- otidebit in the electronic credit ledger or electronic cash ledger. equivalent tothe creditofmputtaxinrespectofinpntsheldmstockand inputs contained in semi-finished or finished goods held V in stockorcapitalgoodsorplantandmachmeryon the dayimmediatelyprecedingthedateofsuchmncellation . _, or theoutput tax payable on suchgoods, whichever' is A higher, calculated' insuch manner as may be prescribed: Providedthatin case ofcapitalgoods’orplant andmachinery, the taxable person shall pay an amount equalto the input tax credit takenon the said Capital goods or plant and machinery, reduced 'bysuchpercentagepointsas maybeprescribedorthetaxonthe transaction value of such capital goode or plant and machinery under section 15, whichever is higher. (6) 30. (l) (2) " (3),. Theamount payable under sub-section (5) shall be _ mlculated'in suchmanner asiifaybe' prescribed. Subject to such conditions as may be prescribed, any registered person, whose registration' is m’n'celled by the - proper officer onhis own motion; may apply to such officer for revocationof cancellation of the registration . in the prescribed manner Wlthln thirtydays from the . date of service of the cancellation order. A The proper officer may, in suchmanner and within such ' period as may be prescribed,by order, either revoke - cancellation of the registration or reject the application: ., ,l i'Ihe revocationofieancellation of registration under the '- ”‘ ‘ Central GoodsandServices Tax Act shall bedeemed to *2 {be arevocation of cancellation of registration under this ' Revocation of . cancellation of ! egisn m0" 1.

. r,vn TAx‘moIcncnmrr AND DEBIT NOTES 1% 3i. (1) I; Aregisteredpersonfmlyingtaxablegoodsshamwore , - or at the time ofi- . (a) ,. removat‘of’ goods for supply to the redplent, where the supply involves movement Offg‘bods; or” (b) deliverylof' goods or making available thereofto the _ _r¢6iPient- in any 9th.“ case. ' issue a taxinvoice shouting the description, quantity» and valueof goodsythe taxcharged thereon and such other particulars as may be prescribed: ‘ , _ Providedith‘atthe Government may, on the recommendations ‘ of the Council, by notification, specify the categories of goods or supplies in respectofwhidia taxinvoicéslnllbeissiedmvithin such time and in such manner» may be prescribed. . (2) Ai‘regiStered person supplying taxable services Shall, _- beforepr aftertheprovisibnofservicebutwithina period prescribedissue a tax invoice; showing the description, ' value; tar . ’ thereon and such other particulars‘as . may be prescribed: ‘‘ , _Pt0vided that theG'overnmentmay, 631m recommendations of the ”Connoil,‘ by 'nbtification and subject to the conditions mentioned therein,spe‘cifythe' :categories of services in respect of i (a), ' " any other document issued in relation to the supply shallbedeemedtobeatagin‘voice;0r (b) taxinvoicemaynotberequircdtobeissued. (3) ' Notwithstanding mm; containedinisub-sections (1) ‘ and (2)—: (a) ,- a registeredpemn mafiWithin 9n: month front the date of issuance of certificateof registration j .andinsuchmanneras maybeprescfibedissuea revised invoice againstthe invoice already issued during the period beginning with the effective date Ofwonfinihe date ofissuance of certificate sofregistrafiontohini; » (b) a registeredpersonmay not issue a tax invoice ifthe vaifieofthe goods arsemces orbodi supplied is less ‘* {bib Mohundred’hipees ‘ :subject to such. Conditions ' and in’suehmanner‘as‘inay be prescribed; ‘Taxinvoioe.

(c) a registered p‘e supglying ' can? ,. goods or . servites orbothhogrypaymgmunder (provisions ' ofsection10shall issue, instead ofatax invoice, abill of supply containing such partiuilars and‘ in such mykpresciibed. ‘ Providedthatthe registeredpersmmaynotnsueabillof supplyifthevalueofthegoodsor servicesorbothsuppliedisless thantwohundred rupees subject to such conditions and'insuch manneras may'beprescribed; ' (d) a registeredperson Shall, on receipt ofadvance paymwentwith respecttoanysupplyofgoodsor ~,semicesorboth, issuearecerptvoucherorany other document, containing such particulars as my be prescribed, evidencing ancerpt of such . payment; » - ; ts); (f) ‘ issuea payment voucher at the timeof making , payment to the supplier who is not registered under ., where,on receipt of advancewith respect to any supply of goods or services orboth the registered ' person issuesa receipt voucher, but subsequently no supply' is made and no tax invoice is issuedin pursuance thereof thesaid registered person may iS‘sue to the person who had made the payment, a _ refundyoucher against suchpayment; a registeredperson who is liable to pay taxunder sub-section (4) ofsection9shall'issue aninvoice in respect of goods or services or both receivedby him on the dateof receipt of goods or servrccsorboth, ' ea, registered person whois liable to pay tax under. sub—section (3) or sub-Section (4) of section9shall “the'Act. ““» (4) Incase ofcontinuous supply of goods, where successive ‘ statements of accounts orsuccessive payments are involved, the'invoiceshall beissuedbetcieor atthe time ' eachsuch statement is issued or, as the case maybe, each such payment is received. (5) Subject to the provrsions of clause (5d) ofsub-section (3), . in case of continuous supply of services,— (a) wherethe due dateof payment isascertainable fromthe contract, the myoiceshall beissued onor before the due date of payment; where the due date of payinehtis- not ascertainable , from thecongact. the invoice shall be issuedbefore ,.; or at the timewhen the supplier of servicereceives the payment; ‘

‘ (c) Where the payment is linked tothe completion of 7(6)" ranevenntheuivorceshallbeissued onérbefore thedate of compleuopcf that event. Inacasewherethesupplyofservrcesceasesundera icontractbeforethecompletisinoffiiesupplytheinvome ' "shallheissuedattheuniewhenthesupplyceasesand <7) sudivaiceshallbeissuedtotheextentofthesupply effected before such cessation. Notwithstanding anything containedin subsection (1); wherethegoodsbeingsentormloenonapprovalforsale w orretumareremoved beforethe supplytakesplace, the invoiceshallbeissuedbet‘oreoratthetimeofsuwly orsixmonthsfromthedateofremovahwhicheveris earlier. -E:tplanataon—Forthepurposesofthissection,theexpressron‘tax invoice” shallinchideanyrevbedinvoiceissuedhythesupplierin respectofasupplymadeearlier. 32., 33. 34. (1) (2) ' Aperspnwhoisnotaregisteredpersonshallnotoollect mrespectofanysupplyofgoodsorservrcesorbothany amountbywayoftaxunderthisAct. Noregisteredpersonshallcollecttaxexceptin accordancewiththeprovrsionsofthisActortherules’ madethereunder. / Notwithstandinganything containedinthis Act or any other lawforthefimebdnginfomwhereanysupplyismadefor aconsiderationmverypersonwhoisliabletopayuxforsudi supply shall prominently indicate'inall documentsrelatingto assessment, taxinvoice and otherlike documents, theamount oftaxwhichshallformpartofthepriceatwhich such supply ismade. (1) Whereataxinvoicehasuenissuedforsiipplyofany goodsorservicesorbothandthetaxablevalue ortax chargedinthattaxinvoiceisfoundtoexceedthetaxable , value ortax payable in respect of such supply, or where the goods suppliedareretumedbytherecipient. or 'wheregoodsorservicesorbothsuppliedatefoundtobe deficient, the registeredperson, whohas supplied such goods orservices or both, may issue tothe recipient acreditnotecontainingsudipmticularsasniaybe prescribed unauthorisedoollection oftax Amountoftaxtnbe g. indicatedintaxinvotoe Creditanddehnnotes.

5Q A2) ,A hnyregistgred personwho issues a eredit note inrelation f A 1,673 supply of seeds or services“ botfi shall declare the details‘flof such ‘credit‘not‘e inth'e return forthe month during which such’gi‘efit‘hote'ha‘s beEn issued butnot lMter than September fellowins the endat the financial W mwhwhsuch‘wwlv mmade or the date off-ling of the relevant annual return. Whichever is earlier, and if new; liabili ashall bquiTiSted in sueh: manner as may bepmsefiM'\ , Provided thatno reduction in output tax liability of the - supplier-shall be permitwd. ifthe incidenceoftax and interest on suchsupplihasbeenpass‘edontoanyotherperson. (9) ,Where a tax invoicihasbeenissued for supply of any - :39de or Whom and thetaxable value ortax charged inthattaxinvoiceisfoundtobelessthanthe taxable value ortax payable in respect ofsuch supply, the registered person, who has supplied such goods or ser'vic‘es’br both, shall issue tothe recipient adebit note containingsuch partiqnlars asrmybe‘pr‘eserihed. (4) Any registered person whoissues adebit note inrelation & to 9; supply ofgoodsor services or both shall declare the details of such debit‘iiotein the return Forthe month ‘ during which “such 'délifi‘inoteflh‘as been issued and the tax liabilityshafl hemmed in‘such manner as may be prescribed. . . .23’3? 2- - ’_ A : ' Explanationz—Eor the 'purposesof this? Acmthe Expression “debit " note"shall include a supplementaryinvoice. ..

5,1: 35. «(1) Every registered person shall keep and maintain, at - mmmorsaamsshmsomdmme certificateof regiitrauomaweand carrier accountof- ,.I- (g) , » production or. manufacture ofgqods (th ihwa‘td or. t :I“) both, W “ (é? ‘Mofgoods- ,, . (d) input tit:23m “331% A V V (eff 'outputtaxpayable Minna,” V (f) suchother particulars as may be prescribed “ ‘3 a f is; ’ t vaidedfliatwheremorethmonephaofbusmasrs .specifiedin thencertificate ofrefisti'atioir,‘ the museum to eachpiaceofhusinessshallbekeptatsuchphcetbfbuainefi- suppl“ 6f goo‘tisor servicesor 5:, Providedfurther that the registeredperson may keep and - maintain such accounts and other particulars :3ng form' m such manner as maybeprescribed. . miss. $33.“"1' ‘3"??59 (2) Every owneror operator: of warehouseor go60wn oil? anyotiserplaceusedforstoragedfgoodsandevery " WW1; irrespeeflwe ofwhethe’rhesis a registered ‘ «person or not. shall maintainregardsafthe consignee and other relevantzdet‘aiis of such goods as s maybepreséribed. :~-r:~ , (3) The Commissioner may notify a classof taxable persons to maintain additional accounts or documents forsuch purpose as may be specified therein. (4) Where the Commissioner considersthat any classof taxable persons is not in a position to keep andmaintain accounts in accordance with the provisions ofthis section, he may, for reasons tobe recordeddn writing. permit such class of taxable persons to maintainaccounts in such manner as may be prescribed. Accountsand other

$2 (5) Everyregisteredlifietioh whoa m during a accountsauditedbyacharteredamaaoost accountantandshnllsubmitacopyoflhemdbdmd ’ 24(2)°fsc$fi9n44andmotfiméognminmdam , audmspnewmaybepmaibed- . (6) Subject mike profisions of dausé (h) Jab-Section (5) x. ofsccfienl7wherethemsissgedpersonmmm forthem . «was 0:150thme section (l),theproperoficerslmlldeterniinefileamoum oftaxpayable onthegoodsorservieesoeboflndntm not accounted for, as ifsuch goods or samotboth hadbeensupphedbyfiéh‘pmv amalgam ' of- Wn 73:. Otzmfipnflasrthwsemaybe-Mm mutandts,‘ afif’for determmati‘ ofi ofsoéh'mx. ', ~, . . g»! g : 36. Bveryfifiistcredpésonrequiredtokeepandmaintainboob ofaccountorothcx moordaundermb-section (1)0fseetion35 _ shaflmtfinthununflltheexpiryofmtymwfim moi-duedateoffilingofanmalremmfordneyurm‘ ' to such accounts and records: , 'Wimfistécdpemnmhoinwybafifipda revisionoranydthetprooeedinfibefmemrAppdfleMu RevisionalAmhofitymAppdlateTribunalorcoumwhednfiledby himorbyfipeCommisdonenorisunda-Wfixnm undetClnpterXBLflnfl retain the mideafll other reCordspertaining‘o the subjectmnm ofsu'chtppenlu revision or Wotmvmhrtwbd ofone purifier fiml dispodofswh upped mievision‘ or pmceedingtonmufignion. orformepefiodspedfiedabmwhichcmishten v. Petiodofmentionof accounts.

CHAPTER-IX , RETURNS 37. (1) Every registered person, other than an Input Service Distributor, a non-resident taxable person and a person paying tax under the provisions of section10,section . or section 52, shall furnish, eleCtronically, in suchform and manner asmay be prescribed, the detailsof outward , Supplies of goods or servicesor both effected, during a tax period. on or before thetenth day ofthe month succeeding the said tax period and such details shallbe communicatedto the recipient ofthe said supplies within ' such time andin such manner as may be prescribed: Provided that the registered person shallnot be allowed to I furnish the details of outwardsup plies during the period from the ' eleventh day to the fifteenth day ofthe month succeeding thetax period: Provided further that the Commissioner may, for seasons to be recorded in writing, by notification, extend the time limit for furnishing such details, for such classof taxable persons as may be specified therein: / Provided also that anyextension of time limit notified by the Commissioner of central tax shall be deemedto be notified by the Commissioner. , . _ (2) Every registered person who has been communicated the details undersub-section (3) of section38 or the details pertaining to inward supplies of Input Service Distributorunder sub-section (4) of section shall either accept or reject the detailsso communicated, on or before the seventeenth day, but-nat'beforethe fifteenth day, of the month succeeding thetax period andthe details furnished by him under sub-section (1) shallstand amended accordingly __ (3) Any registered person, who has furnishedthe details under sub-section (1) flat any taxperiod andwhichhave , remained unmatched under ‘ section or" seetion 43, v shall, upon discovery of any- erroror omission therein, rectify sucherroror omission insuch manneras may be prescribed, and shall pay the taxand interest, if any, in ‘ acase thereisa short paymentof tax on account of such ' erroror omission, in the returnto befurnishedforsucli tax period: Furnishing details of outward supplies.

Provided that no rectification of error or omission in respect of the details furnished under sub-settion (1) shall be allowed after furnishing of the return under section for the month of September following the end of the financial year to which such details pertain. or furnishing of therelevant annual return. whichever isearlier. Explanation:—For the purposes of this rChapter, the expression “details ofoutward supplies” shall include details of invoices, debit notes, credit notes and revised mvoxcesusuedin relation to outward supplies made during any tax period. . ‘ 38. (1) Everyregistered persongother than an Input Service Distributor or a non-resident taxable person or a person paying tax under the provisions ofsection10. section or section 52, shall verify, validate. modifyor delete, ifrequir‘edthede'tailnelatingto outwardsuppliesand . credit ordebit notes communieated under sub-section (1) of section to prepare the details ofhis inward supplies and credit or debit notes and may include therein, the details of inward supplies andcredit or ' «debitnotesreceivedbyhiminrespectofmchsupplies ' » that have notbeen declaredbythesupplierundersub- ' section (1) of section 37. ' ‘I (2) EveryngisteredpersomotherthananlnpmService , ' Distributororanon-residenttaublepersonoraperson paying tax under the provisions ofsection 1:0,:section. or section52, shall furnish. eleetromllfithedetails ofinwardsuppliesoftaxablegoodsorservicesorboth, including inward supplies of goods or-services or both onwhich thetaxispayableou reversechu'gebasisunder , this Act and inward supplies of goods oriservices or both taxable under the Integrated Goods and Services Tax Act or on which integrated goods and services tax is payable under section of the Customs TariflAct, 1975, and credit or debit notes received in respect of such supplies during a tax period after the tenth day but on or before the fifteenth day of the month succeeding the tax period insuch form and manner as may be prescribed: _ Provided that the Commissionermay, for reasons to be recorded in writing. by. notification, extend the time limit for furnishing such details for such class of taxable persons as may be specified therein; . ' Provided further that any extension of time limit notified by the Commissioner; of central tax'shall be deemed 'to be notified by theCommissioner. ' , .F .l. ll-lof inward supplies.

(3) The details of supplies modified, deleted or included by the recipientand furniShed Under sub-section (2)shall ' be communicatedto the supplier concerned in such mannerandwithinsuchtimeasmaybeprescribed. (4) The detailsof supplies modified, deletedorincluded by the recipient in the return furnished undersub-section (2) or sub-section (4) ofsection39shallbecommunicated tothe supplier concernedinsuchmannerand within such timeas may be prescribed. (5) Any registered person, who has furnished the details under sub-section (2) for any tax period andwhichhave remained unmatched under section orsection 43, » shalt, upon discovery of any error oromission therein, rrectifysuch error or omissionin the tax period during which such erro'ror omissionisnoticedinsuchmanner ‘asmaybeprescribed, andshall‘paythetaxandinterest, ”if any, in casethere is ashort payment oftaxon account of such erroror omission, in the return to be furnished forsuchtax period. Provided that norectificationof error or omission' in respect ofthe detailsfurnishedunder sub- section (2) shall beallowed after furnishing of the return undersection 39for the month of September following the endofthe financial year to which suchdetails pertain, ‘ orfurnishing ofthe relevant annual return, whicheverisearlier 39. (1) . Every registeredperson, otherthan an Input Service Distributor or a non-resident taxable person or a person "paying tax under the provisions ofsections 10, section bisection shall, for every calendarmonth or part thereof, furnish, insuchformand manner as may be prescribed, a return, electronically, ofinward and outward supplies of goods or services or both, input tax credit availed, tax payable. tax paid andother particulars as may beer on or before the twentieth day of themonth succeeding such calendar month orpart thereof. (2) A registered person paying taxunder the provisions of section’10 shall, for each quarter or part thereof,furnish, in suchformand manneras maybe prescribed, a return. electronically, of inward supplies of goods orservices or both, tax payable andtax paid within eighteendays after the endofsuch quarter. Worm

c» , (4) (5) (6) “ Every registered person required todeduct taxatsource under the provisions" of section. shall furnish, in suchform andmanneras may be‘prescribedt a return, electronically, for the monthin which such deductions have heen made within ten days alterthe end of such month. Every taxable personregistered asan Input Service Distributor shall, for , every calendar month or part thereof;filrnlshmsudifomandmannerasmayhe prescribed, a return, electronically, within thirteen days after theend of such month. Everyregistered non—resident taxable person shall, for every calendar month or part thereof,furnish, in such formandimnner as maybe prescribed, a return, electronically, within twentydays afterthe. end ofa calendar month or within seven days after the last day of the period of registration specified under sub-section(l) of section 27', whichever is earlier. The Commissioner may, for reasons tobe recorded in writing,.by notification. extend the time limit for furnishingthereturnsunderthissectionforsuchdaas ofregisteredpersonsasmaybespecifiedtherein: Providedthat any extension oftime limit notified by the Commissioner ofcentral taxshall bedeemed tobe notifiedby the Commissioner. ’ ‘ (7)} Everyregistered person, whois required tofurnish a return. under sub-section“) or sub-section (2) or sub-sectionfgilor sub-section (5); shall pay'to the I . Government thetax‘due as per such return not later (8) ,thanthelastdateonwhichheisrequiredtofiirnishsuch ' return. Every registered person who is required to furnish a returnunder sub-section (1) orsub-section (2) shall furnish a return for every tax period whether ornot any ‘ supplies of goods orservicesor both havebeen effected during such tax period.

40. Everyregisteredperson whohasmade outward supplies 1n ’ the period betweenthe date on which hebecame liable to; 41: 42., (9) Subject to the provisions oEsections and 38, if any registered person after furnishing a return undersub- section (1) or sub-section (2) sub section (3) or sub- section (4) orsub- section (5) discovers any omission or incorrect particulars therein, other than as a result of scrutiny, audit, inspection or enforcement activity by thetax authorities, heshall rectify such omission or ‘ incorrect particulars 1n the return tobe flirnished for the 3-? month or ‘qu‘arter, as the case may be, during which such "omission or incorrect particulars are noticed, sillject to payment of interest under thrs Adi;- “ ' Provided that no such rectrfication of any omission or incorrect particulars shallbe allowed after the due date for furnishing of return for themonthof September or second quarter following the end of thefinancial year, orthe actual date of furnishing ofrelevant annual return, whichever' is earlier (10) A registered person shall not be allowed to furnish a return for a tax period if the returnfor any of the previous tax penods hasnut been furmshed by him. registration tillthe date onwhich registration hasbeen granted shalldeclarethesameinthefirst return furnished by himafter grant of registration. (1) Every registered person shall, subject to suchconditions "(21‘ " (1) and restrictions as may be prescribedbe entitledto take crecbt of eligible input tax, as self assessed, 1nhisreturn ‘1 and such amount shall be credited ona provisional basis to hiselectronic credit ledger The creditreferredto in sub-section (lishallrbe. ut1115ed only for payment ofself-assessed output taxas per the return referred tointhe said subsection. _, 'lhe details of every inward supply furnished by a , registered person (hereafter 1n this section referred toas the “recipient ”) fora tax period shall, in such manner and within suchtime as may be prescribed bematched— (a) withthe correspgndmg details: of outward supply furnished M the corresponding registered ' person (hereafter in this section referred to as the “supplier” ) in his valid return for the same tax period or anypreceding tax period; FirstReturn. Claim of input tax creditand provisional acceptance thereof. Matching, reversaland reclaim of input tax ' credit.

of1975 of1975 (2) (3) (4) (5) (6) (7) (b) with the integrated goods and servicestax paid under section3 of the Customs’Tarifi‘ Act, in:\ « . respect of goods imported by him; and (c) for duplication of claims of input tan credit. _ The claimof input tax creditin respect of invoices or debit notes relating toinward supply that matchwith the details of corresponding outward supply orwith the integrated goods and services tax paid under section of the CustomsTariff Act, 1975in respect of goods [imported by himshall be finally accepted and such acceptance shall be communicated, in such manner as may be prescribed, to the recipient. ‘ Where the input tax credit claimed by a recipient in respect of an inward supply is in excessof the tax declared by the supplier for the same supply or the outward supply is not declared by the supplier in his valid returns, the discrepancy shallbe communicatedto bothsuch persons in such manneras may be prescribed. The duplication of claims of input tax credit shall be , communicated to the recipient insuch manner asmay be prescribed. The amount in respect of which any discrepancy is communicated under sub-section (3) and "which is not rectified by the supplier in his valid returnforthe monthin which discrepancy is comimmicated shall be addedto the output tax liability of the recipient, in such manner as may be prescribed, in his returnfor the month succeeding the month in which the discrepancy is communicated. ' The amount claimed as input tax credit thatis foundto bein excess on accountof duplication of claimsshall be added, to the output tax liability of the recipient in "his return for the monthin whichthe duplication is communicated. The recipient shall be eligible to reduce, from his output ‘ tax liabilityrthe aniount added under sub-section (5), it ; the supplier declares the details of the invoice or debit note inhis valid return withinthe time specified insub- section‘(9) of section 39.

(8) (9) Arecipient in whose output taxliability any amount has been added under sub-section (5) or sub-section (6), shall be liableto pay interest at therate specified under ‘ sub—section (1) of section50 onthe amount so added from the dateof availing ofcredit till the corresponding additions are made under thesaid subsections. Where any reduction in output tax liability is accepted under sub-section (7), theinterest paid undersub— section (8) shall be refunded tothe recipient by crediting the amount in the corresponding headof his electronic cash ledger in such manner as may be prescribed: Providedthat the amountof interestto be credited in any case shall‘not exwedthe amountof interest paid by the supplier. (10) The amount reduced fromthe output tax liability in (1) contraventionof the provisions of sub-section (7) shall be added to’the output tax liability of the recipient in‘his return for the month in which such contraventiontakes place and such recipient shallbe liableto pay interest on the amountso added at the rate specified in sub-section (3) of section50. The detailsof every credit note relating to outward supply furnishedby a registered person (hereafter in this section‘referredtoas the “supplier”) for atax period shall, in such mannerand within such time as may be . prescribed, be matched- . (a) [With the corresponding reduction inthe claimfor ‘ input tax credit by the corresponding registered person (hereafter inthis section referredtoas the “recipient”) in hisvalid return for the same tax period or any subsequent tax period; and (b) for duplication of claims for reduction in output tax liability. , ‘ The claim for reduction in Output tax liability by the supplier that matches withthe corresponding reduction inthe claim for input tax credit by the recipient shall be finally acceptedand communicated, in such manner as may be prescribed, to the'supplier. Matching, reversal and reclaim of reductionin output tax liability.

(5) (6) (7) (8) 3(9). 92a Where the'reduction’of output tax liability in respect of Ward supplies exceeds the corresponding reduction ‘ -i‘uttheclaim for' input taxcreditioriéthe corresponding credit note isnotdeclared by the recipient in hisvalid returns; the discrepancy shall becommunieated to both 1;} I.such persons in such;manner as may be prescribed. 'Ihe duplication ofclaimsforreduction in output tax liability shallbe communicated tothe supplier' insuch manner as may be prescribed. The amount in respect ofwhich any discrepancy is communicated under subsection (3) and whichis not rectified by the recipient inhis valid i'eturnforthe monthin which discrepancy is communicated shall beadded tothe output tax liability of the supplier, in such manner as may be pracribed, inhisireturnforthe month succeedingthe monthinwhichthe discrepancy iscommunicated. Theamountinrespectofanyreductioninmitputtax liability thatis foundtobeon account ofduplication ofclaimsshallbeaddedtotheoutputtaxhabihtyof thesupplierinhisreturnforfliemonthinwhichsuch duplicationiscommunicated. ' 'Ihe supplier shallbe eligible to reduce, from his output liability theamountadded undersub—section (5) if the recipient declaresthedetailstthecredh'note'in his valid return within the time specified in sub-section (9) of section 39. A supplier in whose output tax liability any amounthas beenaddedundersub- section (5) or sub—section (6), shall be liable to pay interest at the rate specified under ’ sub-sectioh (1) of section 50in respect oftheamountso ' addedfromthedate of suchclaim for reduction inthe ‘ output tax liability tillthe Corresponding additionsare madeunderthesaid subsections. Where any reduction' in output tax liability is accepted under sub- section (7), the interest paid undersub- section (8) shallberefundedto the supplier bycrediting , the amount in the corresponding head of his electronic "f fcash ledger in such manner as may be prescfib¢d= Provided that the amount of interest to becredited in any case shallnoteticeed the amount of interest paid by the recipient.

(5) (6) (7) (8) 3(9). 92a Where the'reduction’of output tax liability in respect of Ward supplies exceeds the corresponding reduction ‘ -i‘uttheclaim for' input taxcreditioriéthe corresponding credit note isnotdeclared by the recipient in hisvalid returns; the discrepancy shall becommunieated to both 1;} I.such persons in such;manner as may be prescribed. 'Ihe duplication ofclaimsforreduction in output tax liability shallbe communicated tothe supplier' insuch manner as may be prescribed. The amount in respect ofwhich any discrepancy is communicated under subsection (3) and whichis not rectified by the recipient inhis valid i'eturnforthe monthin which discrepancy is communicated shall beadded tothe output tax liability of the supplier, in such manner as may be pracribed, inhisireturnforthe month succeedingthe monthinwhichthe discrepancy iscommunicated. Theamountinrespectofanyreductioninmitputtax liability thatis foundtobeon account ofduplication ofclaimsshallbeaddedtotheoutputtaxhabihtyof thesupplierinhisreturnforfliemonthinwhichsuch duplicationiscommunicated. ' 'Ihe supplier shallbe eligible to reduce, from his output liability theamountadded undersub—section (5) if the recipient declaresthedetailstthecredh'note'in his valid return within the time specified in sub-section (9) of section 39. A supplier in whose output tax liability any amounthas beenaddedundersub- section (5) or sub—section (6), shall be liable to pay interest at the rate specified under ’ sub-sectioh (1) of section 50in respect oftheamountso ' addedfromthedate of suchclaim for reduction inthe ‘ output tax liability tillthe Corresponding additionsare madeunderthesaid subsections. Where any reduction' in output tax liability is accepted under sub- section (7), the interest paid undersub- section (8) shallberefundedto the supplier bycrediting , the amount in the corresponding head of his electronic "f fcash ledger in such manner as may be prescfib¢d= Provided that the amount of interest to becredited in any case shallnoteticeed the amount of interest paid by the recipient.

45. 47. (10) The amount reduced from output tax liability in contraventionofthe provisions of sub-section (7), shall ‘be added to the outplrt tax liability ofthe supplier 1nhis > return for the mor'rth in which such contravention takes - placeand such suppligrshall be liableto pay intereston theamount so added at the rate specified in sub- section , (3) of section 50. ' . . (1) Everyregisteredperson, other than an Input Service Distributor, a person paying tax under section 51or section 52, a casual taxable person and a non-resident taxable person, shallfurnish an annual returnfor every financial year electronically' 1n such farmand manner " as may be prescribed on or before the thirty- -first day of i December following theend of Such financial year. v (‘2)! mEr/eryregistered person whois required to get his ‘ .accounts audited under sub-section (5) of section ‘ '3 shall furnish electromcally, the annual. return under sub-section (1) along with. the audited copy of the annual accountsanda reconciliation statement, reconciling the valueof supplies declared-in thereturn furnishedforthe financial year with the audited annual financial statement, andsuch other particulars as may be prescribed. , Every registered person who is required tofurnishareturn under sub-section (1) of section39 andwhose registration . has been cancelledshall furnisha finalreturnwithin three monthsof the date of cancellation ordateof cancellation order, whicheverrs later, m suchform andmanner as may be prescribed. Wherea registeredperson failstofurnish areturn under section 39, section44or section 45, a notice shall beissued requiring him to furnish suchreturnwithin fifteen days in such form andmanner as may be prescribed. *(1) Any registered person whofailsto furnish thedetails of , outward or inward suppliesrequired under section37 or section or returns required undersection39orsection by the due date shall pay a latefeeof onehundred ‘ rupees for every dayduring which such failurecontinues subject toa maximum amount offive thousand rupees. Annual return. Finalreturn. Noticeto return defaulters. Levy oflate fee.

. ’62 (2) Any registered person who fails to furnish the return _ required under section by the due date shall be liable to pay a latefee ,of one hundred rupees for every day during which such failure continues subject to a 3- maximum ofan amount calculated at a quarter per cent of his turnover fifiie’ ”State ' , . (1) '-Ihe manner of approval of goods and servicestax Goodsandscrvicesw practitioners, their eligibility conditions, duties and Pm‘imm- - obligations, mannerof removal and other conditions relevant for their functioning shall be such as may be prescribed. (2) A registered person may authorise an approved goods _’and service tax practitioner to furnish the detailsof outward supplies under section 37, the details of inward supplies under section and the return under section 39or section 44°in such manneras may be prescribed. ( 3) Notwithstanding anything containedin sub-section (2), the responsibility for correctness of anyparticulars fiirnishedinthe return or other detailsfiledbythegoods and semces tax practitioners shall continue to rest with the registered person 0n whosebehafl'such return and detailsarefurniahed. r i

49. (2) _(l) ‘ CHAPTER-X PAYMENT OFTAX Eyery deposit made toWarastax,interest, penalty, fee or any otheramount by a;taxable person by internet banking or by using credit or debit cardsor National . Electronic Fund’I‘ransferor RealTm: Gross Settlement or by such other mode and subject to such conditions and restrmuonsasmaybeptescribedshaflbecreditedto the ,, electronic cash ledger of sugh person to be maintained‘ in such manneras may be prescribed, I‘Rg" The input tax credit as self-assessed m thereturn ofare glistered person shallbe creditedto his electronic credit ‘ .-.- ledges in accordance with section 41, to be maintained .«insuchniannerasmaybeprescribed. .. .; x The amount available inthe electroniccash ledger may - be used for making anypayment towards tax,interest, ‘ (4) - “penalty; feesor any other amount payable under the provisions of thisActorthe rulesmade thereunder' in , , such manner and subject to such conditions and within. ’ 'suCh time as may be preScribed. The ambunt availablein the electroniccredit ledger may beusedfor making any payment towards output tax under thisAct or under the Integrated Goodsand Sci-Vices TaxAct' in such manner and subject tosuch 5) Theammmtrofinput tax credit available inthe electronic creditledger ofthe registered person on account of- (a) integrated tax shall first beutilised towaras payment of integrated tax andthe amount remaining, if any, Payment of tax. (interest, Penalty amounts. maybeutihsedtowardsthepaymentofcentraltax',, = - andState tax. or asthe case may be, Union territory tax. in that order; _ ,. (b) thecentraltaxshallfirstbeutihsedtowardspayment ofcentral taxand the amount retraining. if any, may be utilised towards the payment of integrated 1‘ _'_ k m: l , ic)‘ :theState tax shall first be utilised towards payment ofStatetaxand the amount remaining, if any,may be utilised towards the payment of integrated tax; and other

(d)the Union territory tax shall first be utilised - towards payment of Union-gterritory tax and the amount-remaining, if any, may beutilised towards the payment of integrated tax; » , ' ' i (e) the central taxshall not'be utilised tom Payment (7) (8) ' ofState tax or Union territory tax; and i (f) the State tax orUnion '*‘territory~m:shall not be . , . utilised toWards payment ofcentral tax. ' The'balance in the3e1ectronic cash ledgerbr' electronic credit ledger after payment oftax. interesfipenalty, fee or any other amount payable under this Act "orthe rules made thereunder may be refunded inaccordance with the provisions of section 54._ ' _ . . An liabilities of ataxable person under this Act shall _ be recordedand maintained in anelectronic liability register insuchmanner as may be prescribed. Every taxable person shall discharge his tax and other .duesunderthisActortheruiesmadetheeeunderinthe following order, namely:— . I 3' (a) self~dssessedtax, and other dues: related to returns of previous tax periods; .3g (b). self-assessed tax, and other dues related to the t9). retumofthecurrenttaxperiod; '_ > (cl .‘anyjdth‘er amouht'payalile under this Act or the ' rules made thereunderincluding; the demand determined under section 73or section 74. ‘ Everypersonwho has paid the tax: on goods or services or bothunder thisActshall. unless the contrary is proved by him, bedeemed to have passed on the full incidence of such taxto the recipient of such goods or services or Explanations For the purposes ofthis SectiOn, (a) (b) the date ofcreditto the account of the Government in the authorised bank shall be'deemed to be thedate of the expression: ‘ ‘ _ (i) ““tax dues’imeans' thetax payable 'Sun‘der this Act and does not include interest, fee and penalty; and ' deposit-in the electrohic‘cash ledger. ' (ii) «other dues” meansjntezrest, Penalty, fee 01' any other amount payable under thisAct 61: the rules " made taste-$19“?- .- ' _,

50.. as) Every person whors liable to paytax in accordance with the provisions of this Actor therirles made thereunder, fails to pay thetaxor any part thereofto theGovernment within the period prescribed, shall for the period for » ,0 which the taxor any part thereof remains unpaid, pay , , . on his own, interest at such"i‘ate,,not exceeding eighteen ‘ , 3931, cents as may be notified bytheGovernment onthe _(2) (hereafter in this sectionreferredtoas “the deducto‘r”), todeduct , ’ (3) \ recommendations of the Cogncm; Z'Ihe interest under sub- section (1) shall becalculated in suchmanner as may be prescribed from the day .succeeding the day on which such taxwas dueto be _ Paid. , _ ,_ . - A taxable person who makesan undueor excessclaim of input tax credit under sub-section (10) ofsection or undue or excess reduction” in 3utput tax liability under sub- section (10) 3f section 43, shall pay interest ~on Such undue or excess claim or on such undueor excess reduction, asthe case may be, at such ratenot exceeding twenty- -four per cent,as may be notified J ' by the Government on the recommendationsof the (1) Council. Notwithstandinganything to the gontrary contained in this Act, the Government may mandate,- (a) a department or establishment ofthe Central Governmentor State Government; or , (b) local authority, or (c) Governmentalagencies; or (d) such persons or categoryofpersons asmaybe notified by the Government onthe recommendations ofthe Council. tax at the rateof one per cent from the payinent made orcreditedto the supplier (hereafter in thissection referredtoas“the deductee”) of taxable; goodsonservices or both, where the total valueof such supply, under a contract, exceeds two lakhand fifty thousand rupees: is differentfrom the State or. as the case may be Uniontemtorywof“ registration of the recipient. Providedthat no deductionshallbe madeifthelocationofthe supplier and theplace of supply rs in a §tate qt Union territory which Intereston delayed y;payment of tax. Tax deductionatsource.

ai-Explamztion: Forthe purpose ofdeductionof tax specified above, thevalue of supply shill be takenasthe amount excluding thetax indicatedin theinvoice (2) r. (3) a (4) “(5) :22?‘ it2‘ The amount deductedastaxunderthissectionshallbe ' paid tothe Gbfii’ninent by the deductorwithin ten days aftertheend of the month in which such deduction' is , made, in sucli manneras may be prescribed. shire deductdr shallfurnishtothe deducted a certificate I_.’\ ' ”3 mentioning therein the eontract value, rate of deduction, ‘ amount deducted, amount paid tothe Government . and suchother particulars insuch manneras may be . prescribed. e If any deductor fails to furnish tothededucteethe certificate, after dedusting the tax at source, within five days of crediting the amount so deducted to the ' Governinent, the deductor shall pay,byway ofalate fee; a sum of one hundred rupeesperday fi'om the day afterthe expiry of such five day period untilthefailureis rectified, subject toa maxinmm amountoffive thousand rupees. The deductee shall claim credit, in his electronic cash ledger, ofthetax deducted and reflected in thereturn of , the deductor furnished under sub-section (3) ofsection A ' 39, in such manner as may be prescribed. (6) (7) ,, {8) If any deductor fails to pay totheGovernmentthe amount deductedastax under sub-section (1), heshall pay interest in accordancewith the provisions of sub- section (1) of section 50, in additiontothe amount oftax _ deducted. The determinationofthe amountindefaultunder this section shall bemade' in the manner specified' insection '23 or section 74. The refund tothe deductororthe deductee; arismg on account ohm or erroneous deduction shah be dealt with in aceordance With the provisions of section 54: ,1: Pfofided that no refiind‘tothe deduCtor shallbe granted. if the amdiint deducted has been creditedto the electromc cash ledger of the deductee.

52. a) Notwithstandmg anything to the contrary contained in thisAct, emery electronic cogamerce operator (hereafter in ,this section;refeeied to as the “operator”), not being an agent: shall celleet. Mount calculated at such < rate not execedingunease: cent, as may be aetified on the recommen- myelitlie Council. of. the net value :Qfataxable supplies spade through it by other suppliers ‘ wherethe consideration with respect to such supplies is to be collected by the operator Explanation ~For the purposes of this sub-section, the ; “net value of taxable supplies”. shall mean the aggregate value of, taxable supplies of goods or services or both, other thawhervices notified under sub-section (5) of section 9, madeduringany month, by all registered persons through the operator reduced by the aggregate valueof taxable supplies returned to the suppliers timing the said month ' (2)The power to collect the amount specified in sub-section 71(1) shall be without prejudice to any other modeof X ” recovery from the operator. ‘ (3) ,(4) — if?) The amount collectedunder sub- section ( 1) shallbe paid to the Government by the operator withinten days after theend of the mqiith in which such collection is made,“ in such manner as may be prescribed Every operator who collects the amount specified in sub- section 11) Shall furnish a statement, electronically, iicontamingfile details of Outward supphes of goods for Services or ;both effected thrpugh it. including the V, supplies of goods or services or bOth returned through it, andthe amount collectedunder siib- Section (1) during a month, in such form and manneras may be prescribed, Within ten days after the end of such month Everyoperatorwho collects the amount specified in sub- section (1) shall fiirilish an annual statement, electronically, con " , i the details of outward supplies of goods or serVices, or both effected through it, including the sup hes (if g or services orboth ' returned thrbugh. if dthe amount colleCtéd under the i said sub-section during the financial year, in such form '6 and manner as may be prescribed, bef6r‘é the thirty first day of December following the end of such financial year. Collection oftax at source.

(6) If any operator after furnishing a statement under sub-section (’4) ‘discemrs ahyomiséitmi‘br incorrect particulars therein, otherthan asaieéultfi‘af scrutiny, audit, insp’éefion orenforcement activity by thetax auth’oi‘ities, heshall re'ctifysuch omission orincorrect ’ particulars' in themem‘to befurni'shed forthe month a during whieh such omisfieimr incorrect peificulars are , - nonced, subject to payment bf interest. s’s*specified in '2 sub- section (1) ofsectionSO' Providedthat nosuchrectification of any (mission or incorrect particulars shall heallowed alter the due datefojr flirtiilshihg ofstatement for the means: of September following theend of the finandahyear or theaetuiildate offurnishing ofthe relevantannual statement, whichever i§iétlrher = ‘ " "(7) The supplier who has supplied the'goods hr services orboththroughtheoperatorshahclaimcredihinhis electronic cash ledger, ofthe amount collected and reflectediiithe statementoftheoperatorfumishedunder sub-seetibn (4), in webmanner as maybe prescribed ' Will The details of supplies finished by every operator under ’ ‘ sub-section (4) shall bematchedwith the corresponding ’ ”details ofoutward Supplies furnished by the concerned iihder thisActin such manner and within suchtime as maybe prescribed. Where thedetailsbf- butwatd supplies furhished by the operator hither sub-section (4) do notmatch with the corresponding details furnished by the supplier under section 37, the discrepancy shall be c0mmunicated to both persohs in. such manner and within Suchtime as (10) ' may be prescribed The amount: in respect of which anydiscrepancy is «communicated under sub-section (9)and which' is not “ ' rectified by the sli pher in his valid return or the operator in his statement or the monthinwhich discrepancy' is ' commuted, shallbeadded to the putput tax liability ' 3f the said supplier, where the value of nutWard supplies furnished Hy the aperator is mare than the valueof , outward supplies furnishe hy the supplier, in his return (for the month succeeding the month in whichthe “ l ”discrepancy is communicatedainsuch manila as may be prescribed.

(11) (12) 69} line concerned supplier,’ inwhose output tax liability any amount hasbeen added under sub-section (10), shall pay the tax payable in respect ofsuch supply along with interest, at the rate specified undersub-section (1) of section 50on the amount so added fromthe date such tax was due till the date‘of‘d its payment. Any authority not belowthe rankof Deputy Commissioner may servea notice, eitherbefore or during thecourse of any proceedings under this Act, ' requiring the operator tofurnish suchdetails relating 'tO‘e— (a) supplies of goods or services or botheffected through such operator duringanyperiod; or ' (b) stock of ' goods held by the suppliers making supplies through such operator in the godowns or warehouses, by Whatevername called, managed by such operators and declared as additional places of business by such suppliers, as maybe specified In the notice. j Explanation: —For the purposes ofthis section, the expression. (13) (14) liveryoperator an whomanotice has been served under sub-section (12) shall furnishthe required information within fifteen workingdays of the dateof service ofsuch notice. Anyperson who fails to furnishthe information required by the noticeservedundersub-section (12) shall, Without prejudice to any actionthat may be taken under section 122, beliabletoa penalty which may extend to twenty five thousand rupees ‘concerned supplier’ shall mean the supplier of goods or services or both makingsupplies through the operator. 53. On utilisation of input tax credit availedunderthisActfor payment oftax duesunderthe Integrated Goods and Services Tax Act‘ in accordanceWith sub~section (5) of section 49, as reflectedinthe validreturnfurnished under spb-section (1) , ofsection 39, the amount collectedasStatetaxshallstand reduced by an amount equal to such creditsoutilisedand the StateGovernmentshall transferan amount equal tothe amount so reduced from the State tax account tothe integrated , taxaccount in suchmannerand within such time as may be prescribed. Transfer of input in credit.

460f1947 Max: 1‘ 54. (1) Anyperson dimming refund of any taxandinterest paidon suchtaxoranyotheramonntpaidbyhim may makean application before the expiry oftwo years from therelevant date' m mch Sorm and manner as may be prescribed: Providedthat a registered person, claiming refimd of any balance in the electronic cash ledger as per ash—section (6) of section49, may claim such refund inthereturn furnishedunder section39' msuchmanner as may be prescribed. (2) A specializedagency oftheUnited Nations Organization , «__, oranyMultilateralFmancialInstitutionandOrganization notified under the United Nations(Privileges and Immunities) Act, 1947, Consulate or Embassy of foreign countries or any other person orclassof persons as notified under sectionSSeptitledtoarefimdoftax paid , : byitoninward suppliesofgoodsorservicesorboth, , maymakeanapphcafionforsuchrefiindinsuchform andmannerasmaybepresaibeibeforetheexpiryof' six months from thelast day ofthe quarter' inwhichsuch supplywasreceived. (3) Subject tothe“ provisions ofsub—section (1‘0),aregistered personmay claim refund of any unutilised input tax :‘creditatthe endotanytaxperiod: Provided that no refund of unutilised input tax creditshallbe allowedincases other than- (i)' zerorated supplies made Without payment of tax; (ii) ' wherethecredithasaccumulated on account ofrate of taxon inputs beinghig‘i‘ér than therate oftaxon outputsupplies (other than nil rated or fully exempt supplies), except supplies oF goods orservicesOr bothas may benotified on therecommendations of the Council. .- Provided fiirtherthat no refund of unutilised input tax credit shall beallowed” in cases wherethe goods exported out of India are subjected to exportduty; . Provided also that no refund ofiinput tax credit shall be allowed, if the supplier of goods or services or both avails of drawback or claims refund of the integrated tax paid on such supplies. (4) The application shallbe accompanied by— Refundoftax.

71‘ (a) such documentary evidence as may be prescribed , to establishthat a refund is due to the applicant; and i an (b) such documentaryw or other evidence (including the documents referred to in section 33) as the applicant may furnishtoestablishthat theamount oftax and interest, if any,paid on suchtaxor any other amount'paid in rélatibn to which suchrefund is claimedwas collected frnm, or paidby, him and the incidence of such taxand interest hadnotbeen passed on toany other person: ' ‘ Provided that where the amount claimedas refund' is lessthan twolakh rupees, it shallnot be necessary for the applicant to furnish any documentary and other evidences buthe may filea declaration, basedon the documentary orother evidences available with him, cettifying that the incidence ofsuch tax and interest had notbeen passed on if?) any other person. (5) If, on receipt of any such application, the proper oflicer' is satisfied that the whole or part oftheamountclaimedas refundis refundable, he may makean order accordingly randtheamountsodeterminedshallbecreditedtothe * Fund referred to“ insection 57. (6) Notwithstanding anything contained in sub-section (5), the proper officer may, inthecase of any claimfor refund on accountof export of goods or services orboth made byregistered persons, otherthansuch category . of- registered persons as may, be notified' in this behalf, frefund on a provisionahbasis, ninety per cent. ofthe gtotal amountso claimed, excludingthe amount of' input (7) (8) tax credit provisionally accepted in suchmannerand subject to such conditions, limitationsand safeguards as may be prescribedand thereaftermakean orderunder sub-section (5) for final settlement of the refund claim afterdue verification of documents furnished by the applicant The proper officer shallissue theorderundersub- section (5) within sixty days fromthe date of receipt of ; application complete in all respects. , . Notwithstanding anything contained' in sub-section (5), J the refundable amount shall,instead of being credited to the Fpnd, bepaid tothe applicant, if: such amount is * '7 relatableto —

(a) , refund of men inputs or input services used inthe ' V ‘ goods or services orboth which are exported out of _ (b)v refund ofunutilised input tax credit under sub— ‘Msection('3);: ‘.'_ (c) refundoftaxpaidonasupplywhichisnotprovid‘ed, , either wholly or partially, and for which invoice has not been issued, or where a refund voucher has been issued; (d) refund of taxin pursuance ofsection 77; . (e). the tan and interest, if any, or any other amount paid by the applicant. ifhehad not passed on the incidence of such tax and interest to‘any other (f) the m or interest borne by 'Suchf’other class of applicants as the Government may, onthe H recommendations of the Council, by notification, (9) Natwithstandinganythingto the contrarycontained'in p anyjiidginenndeaeqorderordirectionoftheAppellate ‘Tribunalorfanycourtorinanyother provisions ofthis Act orthe rulesmadethereunda‘orinanyother law for fliefimebeingmforcenorefimdshallbemadeexcept inaecordancewiththeprovisiom of sub—section(8). ‘ (10) Where any refund is due under sub-Section (3) toa registered person Who has defaulted in furnishing any return or who is required to pay anytax, interest or penalty, which has not been stayed byany court, Tribunal or Appellate Authority by the specified date, the proper oficer may— . ’ ' , (a) withhold payment of refund due until the said person hasfurnished the return or paid the tax; interest or penalty, as the case may be; (b) deduct from therefund due, any tax, interest. ' penalty, feeor any other amount which the taxable person isliable to pay but which remains unpaid , . under this Act or under the existing law. Explanation ‘:'-Forthe purpoSes ofthis stib-section,‘the' expression “specified date”-shallimean the last date for filing an 2appeal under thisAct. - '

(l) (2) (ll) (12) n(1.3). ‘ (14) Wherean order giving rise toa refund isthe subject matterof an appeal orfurther proceedings or where any other proceedings under thisActis pending andthe » Commissioner is of the opinion that grant ofsuch refund is likely to adversely affect the revenue in thesaid appeal or other proceedings onaccount of malfeasance orfraud committed, he may, after giving the taxable person an opportunity of being heard, withhold therefund tillsuch time as he may determine Where a refund is withheldunder sub-section(11), the taxable person shall. notwithstandinganything contained in section 56, be entitled to interest atsuch rate not exceeding six per cent. as may be notifiedon the recommendationsofthe Council, if as a resultof the appeal or further proceedings hebecomesentitled to refund. , . Nomhstmdmg anything tothe contrary contained in this section, the amount of advance’tax depositedby a casual taxable person or a non-residenttaxable person ’ under suB~seCtion (2) of section 27, shallnotberefunded unlesssirchpersonhasinrespectoftheentireperiod .torwhidithecertificateofregistrationgrantedtohim had remained' an force, furnished all the returns required under section 39. Notwithstandinganything containedinthis section, no refund‘under sub—section (5) orsub-section (6) shall be paid to an applicant, if the amount isless thanone thousaa’d rupees. , Explanation:- Forthe purposes-of this section;— “retaind” includes refundof tax on inputs or input services: used in the goods orservicesorbothwhich are exported out of India, orrefundoftaxonthe supply of goods regarded as deemed exports, orrefundofunutilised input tax credit as . provided under sub-section (3). Hrelevant'date means - (a) inthecase of goodsexported out of India wherearefund ,of tax paid isavailable in respect of inputs or input ; services used insuch goods,— (i) if the goods are exportedby sea or air, the dateon whichthe ship or the aircraft in which such goods are loaded. leaves India; or ’

(ii)? ifthe goods are exported by land, the dateonwhich such goods pass the frontier; or 1’ (iii) ifthe goods are exported bypost, the date of (b) (c) ‘ despatch of goods by the Post Ofice concerned toa place outside Tndin; _ inthe case of supply of goods regarded as deemed exports where a refundof tax paid' is available' in respect ofthegoodnthedateonwhich-thereturnrelatingto ' such deemed exports is filed; in the case ofservices exportedlnut of India where a refundof tax paid is available in respect 0t inputs or input services used' insuch services, thedate of-— (i) receipt of payment in convertible foreign exchange, wherethe supply Of services had been Completed q prior to the receipt of such payment, or . (ii) issue of mvome, where payment fiirtheservices had to (e) (f) (8) (hi been received' 1n advance priorto the date of' issue of the invoice; in case wherethe tax becomesrefundable as a consequence of judgment, decree, order or direction of ' I the Appellate Authority, Appellate Tribunal or any court, the date of communication of such judgment, decree, order or direction; in the case of refund of unutilised input taxcredit under sub-section (3), the end ofthe financial year in which such claim for refund arises; ' ‘ inthecasewhere tax is paidprovisionally under this Act or therules made thereunder, the date of adjustment of taxafter the finalassessment thereof; inthecase ofa person, other than the supplier, thedate of receipt of goods orservices or both by such person; and in any other case,the'date of payment pf tax.

460f1947 55. The Government may, on the recommendations of the Council, bynotification, specify any specialized agency of the United Nations Organizatibn or any Multilateral Financial Institution and Organization notified under the United Nations (Privileges and Immunities)Act, 1947,Consulate or Embassy of foreign countries Many other person Or class of Vpersons as may be Specified in this behalf, who shall, subject to such conditions and restrictions asmaybe prescribed, be entitled to claima refund of taxes paid on tliéiiibtified supplies ofgoods or services or both received by them? ' 56. If any tax ordered to be refunded under sub—section (5) of section to any applicant is not refunded within sixty‘ days from the date of receipt of application under sub-section (1) of that section, interest at suchrate not exceeding six per cent. as may be specified in the notification issued by the Government on the recommendationsof the Council shall be payable in ' respect of such refund from the date immediately afterthe expiry of sixty days from the date of receipt of application under the said sub-section till the date of refund of such tax: Provided that where any claim of refund arises frOm an order passed by an adjudicafing authority or Appellate Authority or Appellate Tribunalor Court which has attained finality and the same is not refunded within sixty days from the date of receipt of application filed consequent to such order,interest at such rate not exceeding nine per cent.as may be notified on the recommendations 'of the Council shall be payable in respect of such refund from the date immediately after the expiry of sixty days from the dateof receipt of application till the dateof refund Explanation:~ For the purposes of this section, where any orderof refund is made by an Appellate Authority, Appellate Tribunal or any court against an order of the proper oflicer under sub-section (5) of section 54, the order passed by the Appellate Authority, Appellate , Tribunal orby the court shall be deemed to be an order passed under the said sub~section (S). ' 57. ’lhe Government shall constitutea Fund, to be called the Consumer Welfare Fund and there shallbe credited tothe Fund,— - (a) the amount of tax referredtoin sub—section (5),of ‘ section 54; . . (b) any income frominvestment of the amount credited to the Fund; and . (c) such other monies received by it, in such manneras may be prescribed. Refimdincertainmes. Interest on delayed refunds.

(l) (2)1 All sums credited to theFund shall beutilised by the Government forthe welfareof the consumersinsuch manner as may be prescribed. .- - The Government orthe authority specified by: itshall maintainproperanduseparateaccountandotherrelevant recordsinrelationtotheFundandprepmanan‘nual statement of accounts insuch formas maybe prescribed inconsultation with the Compnnller and Auditor-' General of India.

CHAPTER—XII . ASSESSMENT Every registeredperson shall -self<assess the taxes payable underthisAct and furnish {£63m for each tax period as (1) Subject tothe provisions of sub-section3§(2), where the I (2) (3) specified undersection39. taxable person is unableto determine the value of goods . orservicesor both or determinetherateoftax applicable ' thereto, he mayrequest the proper officer111 writing giving reasonsfor payment oftaxona provisiOnal basis and the proper officer shall pass an order, withina period not laterthan ninetydays fromthedate of receipt of such request,allowingpayment of tax on provisional basis at such rate oronsuchvalueas may be specified by The payment oftax6n provisionalbasismay be allowed, ifthe taxable person executes abond in such formas may be prescribed, andwith such "surety or security asthe - proper officer may deem fit. binding thetaxable person for payment ofthedifference between theamount of ' taxas may be finally assessedand the amount of tax prow‘sionally assessed. 'ihe properofiicer shall, within a period not exceeding six monthsfrom thedateofthecommunicationofthe order issued under sub-section ( 1), pass thefinalassessment orderafter taking intoaccountsuchinformation as may be required for finalizing theassessment: Providedthat the‘periodspecified' in thissub-section may, on sufficient cause being shownandforreasonsto berecorded in writing, beextended by the Joint Commissioner or Additional Commissioner fora further period not exceeding six months and by the Commissionerfor such further period not exceeding four years. (4) The registered person shallbe liable to pay intereston any tax payable on the supply of goods or services both under provisional assessment butnot paid onthe due date‘ specified undersub-section (7) of section39 or the rulesmade thereunder, attherate specified under sub- section (1) ofsection 50, from thefirst day afterthedue date of payment of taxin respect of the said supply Of goods or services or bothtillthedateofactual payment. whether such amount is paid before oraftertheissuance oforder for finalassessment. Self-Assessment.

62. (5) (1) (2) , (3) (1) (2) Where the registered person isentitledtoa refund consequent to the orderforfinal assessmentunder sub- section (3), subject to the provisions of sub-section (8) ofsection54, interestshallbepaidonsuchrefimdas provided in section56. The proper officer may scrutinizethereturn and related particulars furnished by the registeredperson to verify thecorrectness ofthe returnand informhim ofthe _ discrepancies noticed, if any, in such manneras may be prescribed and seek his explanation thereto. Incasetheexplamflonisfoundacceptabletheregistered person shallbe informed accordingly and nofurther ‘ actionshallbetakeninthisregard.‘ ' In caseno satisfactoryexplanationis firrnishedwithin aperiodofthirtydaysofbeinginformedbytheproper officerorsuchfirrtherperiodasmaybepermittedby himorwhaethemgistaedpersonafieraccepting thedisaepandmfailstotakethecorrectivemeasure inhisreturn forthe'rnonth in whichthediscrepancy is accepted, the proper oilicer may initiate appropriate action including thoseunder section or section660r section67, orproceedtodeterminethetaxandother " duesundersection73orsection74. "Notwithstanding anything to the contrary contained in section73or section 74, where a registeredperson fails tofurnishthe return under section39orsection 45, even after the service ofa noticeundersection 46, the proper officer may proceed to assessthe tax'liability of the said ‘ person tothebestof his judgment taking intoaccount all the relevant material whichisavailableorwhichhe has gathered and issue an assessment order within a period offive years from the date specified undersection for finishing of theannual returnfor thefinancial ’ year to whichthetax nOt paid relates. Wherethe registered person furnishesavalidreturn within thirtydays oftheservice ofthe assessmentorder runder sub- section (1), the said assessmentorder shall " be deemedtohave been withdrawn but theliability for payment ofinterest under sub—section (1) of section orfor payment of late fee under section shallcontinue. Scrutinyofreturns Assessment ofnon-filers ofreturns.

63. Notwithstanding anything to the contrary contained in section or section 74,where a taxable person failsto obtain registration even though liable todo so or whose registration ,, has been cancelled under Subsection-(2) of section but whowasliable topaytax, theprop’er officermayproceedto assess’the tax liability ofsuch taxable person to the best ofhis judgement forthe relevant tax periods and issue an assessment order within a period of five years from the date specified ‘ under section-H for fumishing'ofthe annual return forthe financial year to which the tax not paid relates: ‘ Provided that nosuch assessment order shall be passed withoutgivingthe personanopportunitynfbeingheard. ' 64. (l) The proper officer may. on any evidence showing a . taxhabihtyofapersoncomingtohisnofioewiththe previous permission of Additional Commissioner or Joint Commissioner, proceed to assess.the tax liability of such person to protect the interest of revenue and issue an assessment order, ifhe has suflicient grounds tobelievefliatanydelayindoingsomayadverselyfiafect the interestof revenue: _ - ‘ ’ . Providedthat wiierethe taxable person to whorn the liability pertains is not ascertainableand such liabilitypertains to’supply of goods, the person in chargeof such goods shall be deemed tobe other amount due under this section. the taxable person liable tobe assessed and liableto pay taxand any (2) On an application made by the taxable person within thirty days frbm the dateof receipt. of order passed under sub-section (1) oron his own motion, if the Additional Commissioner or Joint Commissioner considers that 'smhorderisermneoushemaywithdrawsuchorder, and follow the procedure-laiddown in section73 or section 74. ' " Assessmentof unnglsteredpersons. Sumnnryusessment'in

65. "(1') (2) (3) ,' (4) CHAPTER XIII AUDIT The Commissioner or any oflicer authorisedby him, bywayofagengaloraspeaficorder mayundertake audit of any registered person for such period. at such frequencyandinsuchmannerasmaybeprescribed. TheofliCcrs referred to insub-section (1) may conduct audit atthe place of business of the registered persoii'or intheir office. Theregistcredpersonshaflbeinfomedhywayofanofice notless thanfifteen working daysprior tothe conduct of ~ auditinsuchmannerasmaybeprescribed. ' “The audit under sub-section (1) shallbe completed within a period ofthree months from the date of continencernent ofthe audit: Provrded thatwhere theCommissioner issatisfied that audit in respect of such registered person cannot be completed within three months, he may, forthe remnstobe recorded in writing, extend the period by a further period not exceeding six months. Expldndfiom— For the purposes ofthis sub-section, the expression j “commencement of audit” shallmean the dateonwhich the records and other documents, called for by the tax authorities, aremade available by the registered person orthe actualinstitution of auditat the place of business whichever' later. (5) (6) (7) During the course of audit, theauthorised officer may require the registered-person;- (i) to afi'ord him the necessary facility to verify the books of accountor otherdocuments as he may require; (ii) tofurnish suchinformation ashe mayrequire andrenderassistance for timelycompletion of the audit. 0n conclusion of audit, the proper oficer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations andthereasons forsuch findings. Where theauditconducted under sub-section (1) results in detection of tax not paid orshort paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper oflicer may initiateaction under section 73or section 74. ‘ Audit by tax mini-id

66. (1) Ifat anystage of. scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rankofAssistant Commissioner, having regard to the natureand complexitycf thecaseandtheinterest of revenue, is of the opinion thatthe value has not been correctly declared or thecreditavailed is notwithin the normal limits, he may, with the priorapproval of the Commissioner, directsuch registeredpersonby a communication in writing to get hisrecords including books of account examinedand audited by achartered accountant oracost accountant as may benominated by ‘ the Commissioner: . (2) The charteredaccountant or costaccountant . so nominated shall, within the period of ninety days, submit a report of suchaudit duly signed andcertified by himto the saidAssistantCommissioner mentioning «thereinsuchother particulars as may be Specified: Provided that theAssistant Commissioner may, on an application made tohiminthisbehalf by the registered person or thechartered accountant or cost accountant or for any material and sufficient reason, extend thesaid period by a further period of ninety days. (3) The provisions of sub-section (1) shall have effect notwithstanding that theaccounts ofthe registered person havebeen auditedunder any other provisions of this Act or any other lawforthe time being in force. (4) The registeredperson shallbe given an opportunity of being heardin respect of any material gathered on the basisof special audit undersub—section (1) whichis proposed to be usedin any proceedings against him .under this Act ortherules made thereunder. (5) The expenses oftheexaminationand auditofrecords under subsection (1), including the remuneration of such charteredaccountant or cost accountant. shallbe determined and paidby the Commissioner and such determinationshall be final. . (6)- Wherethe special auditconductedunder sub-section (1) resultsindetection of tax not paid orshort paid or erroneously refunded, or input tax credit wrongly availedor utilised, the proper officer may initiateaction undersection 73orsection 74. Special audit.

. CHAPTER XIV INSPEQl'ION, SEARCH, smz:mm AND ARRESf d7. (1) Where·the proper officer, not below the rank of Joint Co?ioner;ita reasons to believe that- '- _(a) a taxable person has suppressed any transaction relating to supply of goods or services or both or the stock of goods in ·hand. or has daiimcl input tax ?dit in excess of .. his entitlement under this Act or has indulged in contravention of any ofthe provisions of this Act or the rules made thereunder to evade tax under this Act; or (b) any person engaged in.the business of transporting goods oran owner or operator of a warehouse or a godown or any other. place is keeping goods whichhave escaped payment of tax or has kept his accounts or goods in such a manner as is likely to cause evasion of tax payable under this Act, he may a?thorise in writing any other officer of State.? tp inspect any places of business of the taxable person or the persons enpged in the business of transporting goods or the owner or.the operator of warehouse or godown or any other place. (Z) Where the· proper officer, I10t below the rank of Joint CO!plllissioner, either pursuant to an inspection carried out under sub-section (1) or otherwise, has reasons to believe that any goods liable to confiscation or any documents or. books or thmgs. which ln his opinion shall be useful for or relevant to any proceedings under this Act are secreted in any place, lie may authorise in writing any other officerof State tu to search and seize or may himself search and.seize such goods. documents or books or things: Provided that where itis not practicable to seize any such goods, the proper officer or any officer authorised by him, may serve on the owner or the custodianof the goods an order that he shall not remove, part with, or otherwise.deal with the goods except with the. previouspermission of such officer: PrO\l'ided furtherthat the documents or ·books or things so seized shall·be retained by suchofficer only for so long as may be necessary for their examination and for any inquiry or proceedings under this Act. Power of . inspem search andseizuft.

(3) l}l.e documents. books or. things referred to in sub- section (2) or . any other .: documents, ?ks or things produced by a taxable pers?Qr any other person, which have not been relied on for the issue of notice under this Act. or the rules made thereunder, shall be returned to such person within a pe!i-Qd not exceeding thirty days ol the issue of the said notice. (4) The officer authorised under sub-section (2) shallhave the power to seal or break open the door of any ptemises or. to break open any almirah; electronic devices, box. receptacle in which any goods, accounts, registers or documents of the person are suspected to beeoncealed, where access to such premises, almi? electronic devices, box or receptacle is denied. · (5) The person from whose. custody any documents are seized under sub-section (2} shallbe entitled to make copies thereof or take titracts therefrom in the presence of an authorised officer at such p1ace an1 time as such officer may indicate ill this behalf?? D.taking_ such copies or taking such extracts may, in the opinion of the proper officer, prejudicially affect the ?on. (6) The goods so seized und?? .. section (2) . shall be released, on a . provisional b "· upon execution of a bond and furnishing of a seairi.ty, in sudi.manntr and of such quantum, respectively, as may be prescribed oron payment of applicable tax. iμterest and penaltypayable, as the case may be. (7) Where any goods are seized under sub-section (2) and no noticein ·respect thereof.is given within.six months of the seizure ofthe goods, the goods shall he•returned to the person·from whose possesaiontheywere sei7.cd: . Provided that the period of six months may, on sufficient cause being shown, be, extended by the proper officer for a further period not exceeding six months. (8) The Government may, havingregard to the perishable or hazardous nature of any goods, depreciation. in the valueof the goods with the passage of time. constraints of storage space for the goods or any .other relevant considerations, by notification, specify the goods or class of goods which shall, as soon as may be after its seizure under sub-section (2), be dJsposed?fby. the proper officer in such manner as may be prescribed.

ofl974 (9) Where any goods. being goods specified under sub- section (8), have been seized by a proper officer or any officer authorised by him. under sub-section (2). he shall ' prepare an inventory' of such goods in such manner as Ibay be prescribed. ? . ......:.-...;:;,,., (10) Toe provisions ofthe Code of Criminal Procedure, 1973, relating to search and seizure, shall, so far as may be, -apply to search and seizure under this section subject to ·. the modification that sub-section (S)of section ofthe saideede shall have effect as if for the word "'Magistrate? w?er it Q(;CUl'S. the word -C.00,IJU88K'Oel'• were substituted. (11) Where the proper officer has reasons to believe that any person has evaded or is attempting to evade the pay'ment . of any tax. he may. fQr reasons to be recorded in writing. sei7F the accounts. registers. or documents of such person produced before him and shall grant a receipt for the same, and shall retain the same for so long as may be necessary in connection with any proceedings under this Act <>r the rules made thereunder for prosecution. (12) The Commissioner or an officer authorised by him may cause pun:hase of. anz.goods or services or both by any person authorised bf him from the business premises of any taxable person. to check issue of tax um>ices or bills of supply by such taxable person. and on mum of goods so purchased by such officer, such taxable person or any person In charge of the business pretnises\shall refund the amount so paid towards the goods after cancelling any tax invoice or bill of supply issued earlier. 68. (I) Toe Government may require the person i;n charge of a Inspection of goods i conveyance carrying any consignment of goods of value movanent exceeding such amount as may be specified to . carry with him such documents and such devices as may be prescribed. (2) The details ofdocuments required to be carried under sub-section ( I) shall be validated in such manner as may be prescribed. (3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer. at any place. he may require the person in charge of the said conveyance. to ? thedocuments prescribed under the said sub- . section and devices for verification, and the said person shall be liable to produce the documents and devices and also a.How the inspection of goods.

2afl974 69. ( l) Where •• the, Commissionei: has · reasons to believe Powa- to arrest • . t:h? ?y pe,son ? CQQnitteq, any offence specified ,:lll clause [a) or clause (b) or clause (c) or clause (d) of ,. sμb--semol\,.(l) of section J32which is punishable under cla??i) or O,i) of.sab-section (l}or,sub-secticm (2) of the said section. he may,. by order, authorise any officer of S?1b\X to arrest sucbperson e; ·• (2) Where a person is arrested under sub-section (1) for an offence specified under sub-section (5) of $Cctio11132. the officer authorised to arrest a person shall inform s? person of the grounds· of an-est· and produce· him before a Magistrate within twenty four hours. (3) :Su'6ject1'to) the provisions of the Code of Criminal Procedure.1973,- (a) where a person ls.arrested under sub-section (1) for any offence specified ?9er sub-section { 4) of section 132, heshall be adoiiired to bail or in default of be% ?f\!arded ? the c?!=>41of the Magistrat.e; ,. (b) 'in the case of a non-toglll7.ablt ·and bailable offenct. the Deputy Commissioner or the.Assistant Commissionersruil}. for.the purpose of releasing an arrested person on baihw-otherwise. have the same po??s.J-Od be subj? totlle .. ? pi:ovisions as an o???r .. ?-c.l}9e of ?.policq station ..... • tafl908 70. (1) The prope,;,officer under.this.A? shall have power to summon any person whose1 attendance he considers necessary either to give evidence or to produce a do?tor any other thing in?any inquiry in the same manner;;u provided in the·caseofacivil court under the provisionsoftht-Cbdeof' €i'Yit?edure. 1908. Power to summon persons to give evidence and produce documents. 4Safl860 (2) Every such inquiry referred to in sub-section (1) shall be deemed to be a "judicial proceedings .. within the meaning of section and section228 of the

(5) (1) (2) , (3) (1) (2) 78 Where the registered person isentitledtoa refund consequent to the orderforfinal assessmentunder sub- section (3), subject to the provisions of sub-section (8) ofsection54, interestshallbepaidonsuchrefimdas provided in section56. The proper officer may scrutinizethereturn and related particulars furnished by the registeredperson to verify thecorrectness ofthe returnand informhim ofthe _ discrepancies noticed, if any, in such manneras may be prescribed and seek his explanation thereto. Incasetheexplamflonisfoundacceptabletheregistered person shallbe informed accordingly and nofurther ‘ actionshallbetakeninthisregard.‘ ' In caseno satisfactoryexplanationis firrnishedwithin aperiodofthirtydaysofbeinginformedbytheproper officerorsuchfirrtherperiodasmaybepermittedby himorwhaethemgistaedpersonafieraccepting thedisaepandmfailstotakethecorrectivemeasure inhisreturn forthe'rnonth in whichthediscrepancy is accepted, the proper oilicer may initiate appropriate action including thoseunder section 65 or section660r section67, orproceedtodeterminethetaxandother " duesundersection73orsection74. "Notwithstanding anything to the contrary contained in section73or section 74, where a registeredperson fails tofurnishthe return under section39orsection 45, even after the service ofa noticeundersection 46, the proper officer may proceed to assessthe tax'liability of the said ‘ person tothebestof his judgment taking intoaccount all the relevant material whichisavailableorwhichhe has gathered and issue an assessment order within a period offive years from the date specified undersection 44 for finishing of theannual returnfor thefinancial ’ year to whichthetax nOt paid relates. Wherethe registered person furnishesavalidreturn within thirtydays oftheservice ofthe assessmentorder runder sub- section (1), the said assessmentorder shall " be deemedtohave been withdrawn but theliability for payment ofinterest under sub—section (1) of section 50 orfor payment of late fee under section 47 shallcontinue. Scrutinyofreturns Assessment ofnon-filers ofreturns. 79

Notwithstanding anything to the contrary contained in section 73 or section 74,where a taxable person failsto obtain registration even though liable todo so or whose registration ,, has been cancelled under Subsection-(2) of section 29 but whowasliable topaytax, theprop’er officermayproceedto assess’the tax liability ofsuch taxable person to the best ofhis judgement forthe relevant tax periods and issue an assessment order within a period of five years from the date specified ‘ under section-H for fumishing'ofthe annual return forthe financial year to which the tax not paid relates: ‘ Provided that nosuch assessment order shall be passed withoutgivingthe personanopportunitynfbeingheard. '

(l) The proper officer may. on any evidence showing a . taxhabihtyofapersoncomingtohisnofioewiththe previous permission of Additional Commissioner or Joint Commissioner, proceed to assess.the tax liability of such person to protect the interest of revenue and issue an assessment order, ifhe has suflicient grounds tobelievefliatanydelayindoingsomayadverselyfiafect the interestof revenue: _ - ‘ ’ . Providedthat wiierethe taxable person to whorn the liability pertains is not ascertainableand such liabilitypertains to’supply of goods, the person in chargeof such goods shall be deemed tobe other amount due under this section. the taxable person liable tobe assessed and liableto pay taxand any (2) On an application made by the taxable person within thirty days frbm the dateof receipt. of order passed under sub-section (1) oron his own motion, if the Additional Commissioner or Joint Commissioner considers that 'smhorderisermneoushemaywithdrawsuchorder, and follow the procedure-laiddown in section73 or section

"(1') (2) (3) ,' (4) 80 CHAPTER XIII AUDIT The Commissioner or any oflicer authorisedby him, bywayofagengaloraspeaficorder mayundertake audit of any registered person for such period. at such frequencyandinsuchmannerasmaybeprescribed. TheofliCcrs referred to insub-section (1) may conduct audit atthe place of business of the registered persoii'or intheir office. Theregistcredpersonshaflbeinfomedhywayofanofice notless thanfifteen working daysprior tothe conduct of ~ auditinsuchmannerasmaybeprescribed. ' “The audit under sub-section (1) shallbe completed within a period ofthree months from the date of continencernent ofthe audit: Provrded thatwhere theCommissioner issatisfied that audit in respect of such registered person cannot be completed within three months, he may, forthe remnstobe recorded in writing, extend the period by a further period not exceeding six months. Expldndfiom— For the purposes ofthis sub-section, the expression j “commencement of audit” shallmean the dateonwhich the records and other documents, called for by the tax authorities, aremade available by the registered person orthe actualinstitution of auditat the place of business whichever' 15 later. (5) (6) (7) During the course of audit, theauthorised officer may require the registered-person;- (i) to afi'ord him the necessary facility to verify the books of accountor otherdocuments as he may require; (ii) tofurnish suchinformation ashe mayrequire andrenderassistance for timelycompletion of the audit. 0n conclusion of audit, the proper oficer shall, within thirty days, inform the registered person, whose records are audited, about the findings, his rights and obligations andthereasons forsuch findings. Where theauditconducted under sub-section (1) results in detection of tax not paid orshort paid or erroneously refunded, or input tax credit wrongly availed or utilised, the proper oflicer may initiateaction under section 73or section

(1) Ifat anystage of. scrutiny, inquiry, investigation or any other proceedings before him, any officer not below the rankofAssistant Commissioner, having regard to the natureand complexitycf thecaseandtheinterest of revenue, is of the opinion thatthe value has not been correctly declared or thecreditavailed is notwithin the normal limits, he may, with the priorapproval of the Commissioner, directsuch registeredpersonby a communication in writing to get hisrecords including books of account examinedand audited by achartered accountant oracost accountant as may benominated by ‘ the Commissioner: . (2) The charteredaccountant or costaccountant . so nominated shall, within the period of ninety days, submit a report of suchaudit duly signed andcertified by himto the saidAssistantCommissioner mentioning «thereinsuchother particulars as may be Specified: Provided that theAssistant Commissioner may, on an application made tohiminthisbehalf by the registered person or thechartered accountant or cost accountant or for any material and sufficient reason, extend thesaid period by a further period of ninety days. (3) The provisions of sub-section (1) shall have effect notwithstanding that theaccounts ofthe registered person havebeen auditedunder any other provisions of this Act or any other lawforthe time being in force. (4) The registeredperson shallbe given an opportunity of being heardin respect of any material gathered on the basisof special audit undersub—section (1) whichis proposed to be usedin any proceedings against him .under this Act ortherules made thereunder. (5) The expenses oftheexaminationand auditofrecords under subsection (1), including the remuneration of such charteredaccountant or cost accountant. shallbe determined and paidby the Commissioner and such determinationshall be final. . (6)- Wherethe special auditconductedunder sub-section (1) resultsindetection of tax not paid orshort paid or erroneously refunded, or input tax credit wrongly availedor utilised, the proper officer may initiateaction undersection 73orsection

(I) Toe Government may require the person i;n charge of a Inspection of goods i conveyance carrying any consignment of goods of value movanent exceeding such amount as may be specified to . carry with him such documents and such devices as may be prescribed. (2) The details ofdocuments required to be carried under sub-section ( I) shall be validated in such manner as may be prescribed. (3) Where any conveyance referred to in sub-section (1) is intercepted by the proper officer. at any place. he may require the person in charge of the said conveyance. to ? thedocuments prescribed under the said sub- . section and devices for verification, and the said person shall be liable to produce the documents and devices and also a.How the inspection of goods. 2afl974 85

( l) Where •• the, Commissionei: has · reasons to believe Powa- to arrest • . t:h? ?y pe,son ? CQQnitteq, any offence specified ,:lll clause [a) or clause (b) or clause (c) or clause (d) of ,. sμb--semol\,.(l) of section J32which is punishable under cla??i) or O,i) of.sab-section (l}or,sub-secticm (2) of the said section. he may,. by order, authorise any officer of S?1b\X to arrest sucbperson e; ·• (2) Where a person is arrested under sub-section (1) for an offence specified under sub-section (5) of $Cctio11132. the officer authorised to arrest a person shall inform s? person of the grounds· of an-est· and produce· him before a Magistrate within twenty four hours. (3) :Su'6ject1'to) the provisions of the Code of Criminal Procedure.1973,- (a) where a person ls.arrested under sub-section (1) for any offence specified ?9er sub-section { 4) of section 132, heshall be adoiiired to bail or in default of be% ?f\!arded ? the c?!=>41of the Magistrat.e; ,. (b) 'in the case of a non-toglll7.ablt ·and bailable offenct. the Deputy Commissioner or the.Assistant Commissionersruil}. for.the purpose of releasing an arrested person on baihw-otherwise. have the same po??s.J-Od be subj? totlle .. ? pi:ovisions as an o???r .. ?-c.l}9e of ?.policq station ..... • tafl908

(1) The prope,;,officer under.this.A? shall have power to summon any person whose1 attendance he considers necessary either to give evidence or to produce a do?tor any other thing in?any inquiry in the same manner;;u provided in the·caseofacivil court under the provisionsoftht-Cbdeof' €i'Yit?edure.

(1) Any officer under this Act authorised by the proper Access to business officer not below the rank of Joint Commissioner shall . premises. have access to any place of business of a registered person to inspect books of account, documents, computers. · computer programs, computer software whether installed in a computer or otherwise and such other things as he may require and which may be available at such place, for the purposes of carrying out any audit, scrutiny, verification and checks as may be· necessary to safeguard the interest of revenue.

of2013 43ofl961 (2) Every person in charge of place .referred;to in sub- section ( 1) shall, on demands mab available to the officer authorised under sub-section fi) or the i audit party deputed by the proper officer or atost·accountant or chartered accoua&ant nominated under seffion 66-- (i) such records as prepared or maintained by the registered person and declared to the proper officer in such manner as •Y be prescribed; (ii) trial balance or its equivalent; (iii) statements ·of annual financial accounts, duly audited, wherever required; (iv) cost audit report, if any, under secti°°' of the Companies Act, 2013; ' · · (v) the income-tax audit report, if any, under section 44AB of the Income-tax Act.1961; and (vi) any other relew.n? record, for the scrutiny by the officer or audit party or the chartered accountant or cost accountant within a peri? ,not exceeding fifteen working days from tl,ie day when such demand is made, or sucli further: period as may be allowed by the said officer or the audit party or the chartered accountant or,cost accountant. 72. ( 1) All ·officers of· Police, •Railways,• CUst? .. and those Officers to assist pn engaged in the· collection of bind tevenll'.e, including oflic:ers. village officers, and officers of central tax and officers of the Union tenitory. tax? assist the proper officers in the implementation, of'this Act. 'IheGovernment: m?y s.. by. notification, .: empower and require any other class of o#.ficers. to. assist the propel'. officers in. the implementation of this Act w'h?n called upon to do so by the Commissioner.

CHAPTER XV DEMANDS AND RECOVERY 73. (1) Where it appears to the pr911er officer that any tax has not· been paid or short paid or erroneously refunded, or where input tax credit h? ?h'wrongly availed or utilised for any reason, othertli,ait]he Jeas<>n of fraud or apy wilful-111isstatement or s'1:ppression of facts to evade tax, h.e shall serve notice <>n ?e ?on. charg?le with tax whichhas not been so paid or whl,ch hasbeen so short paid or to whom the refund has erroneously . been made, or who has wrongly availes} or utilis,ed input tax credit, requiring him to show cau?e wl,iy he should not pay'the.amount specified in the notice along with interest payable thereonunder section and a penalty leviable underthe provisions ofthis Act or the rules made thereunder. (2) The proper officer shall issue the notice under. sub- section (1) at least three months prior to the time limit specified in sub-section (10) for issuance oforder. (3) Where a notice hasbeenissued for any period under sub-section (1 ), the proper officer may serve a statement, containing the detailsof tax not paid or. short paid or erroneously refunded or input tax Q'e(tit wrongly ivailed or utilised forsuch periods other thanthose covered under sub-section (1), on the person chargeable with tax. ( 4) The service -of such statement shallbe deemed to be · service of notice on such ·person under?on (l), subject to the condition that the grounds relied upon for such tax periods otherthan· th? coveredundetsub- section (1) are the same as are mentioned in the earlier notice. (5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3) pay the amount of tax along with interest payable thereonunder section50 on the basis ofhis own ascertainment of such tax or the tax as ascertained by the proper officer andinform the proper officer in writing of such payment. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other thanfraud or any wilful misstatement or suppression of facts.

(6) The proper officer, on receipt of such information, shall not serve any notice under sub-section ( 1) or, as the case may be, the statement under sub-section (3), in respect ofthe tax so paid or any penalty payable, under the . provtsions of μtis J\ct or the rules made there?der. (7) Where the J?f? officer is of the, 9pmion that the amount paid 'Wder sub-section (5) falls short of the amount actually .payable. he shall proceed to issue the notice .as provided for in sub-section (1) in respect of such· amount ·.which falls short of the amount actually payable. · . (8) Where. any person chargeable with tax. under sub- section (l'f or sub-section (3) pays the said tu along with interest payable under section within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said.notice shall be deemed to be concluded. (9) The proper officer shall, after considering the · representation. if any. made by person ?geable with tax. determine the amount of tax. in? and a penalty equivalent toten per cent of tax or ten thousand rupees. whichever is higher, due from such person and .issue an order. · ( O) · Toe proper officer shall isSue the-0rder under sub-section (9),Mthin three years from the due date for filing of annuat .ttturn for the financial year to· which the tax not paid9r short ppd or input. tax credit wrongly availed or utilised relates to. or within three years from the date of erroneous refund. (11) Notwithstanding anything .contamed in sub-section (6) or.sub-section (8), penalty under sub;-;section (9) shall be payable where an.y amount of self-assessed tax or any amount,..collected ?}? has not been paid within a period of thirty days from the due date of payment of such tax.

74. (1) Where. it appears to the prpper officer ?taIJJ.tax has llQt ? paid or short paid or erroneously. refunded Of! ?here input tax crajit has been wrpl)gly availed or utilised by reuon ?f fraud, or any willful-mis.statement or suppression of facts to ?e tax, he shag sei:y,e notice on the person chargeable,with tax which.? 11ot been so paid or which has been so short paid or to whom the refund has erroneously been made, or who. has wrongly availed or. utilised input tax· credit, ?utring bim to show cause ?hy he should notpay the a11.1buntspecified in the notice ?ong with interest payablith?tto,? under section and a penalty equivalent to the tat specified in the notice. ·, . · (2) 'Ihe proper officer. shall issue the notice under sub- section (1) at least .six months prior to the time limit specified in sub-section. (10) for issuance of otder. (3) Where a. notice has been issuedfor any period under sub-section (1 ), the proper officer may serve a statement, containing the cletails of taxnot paid or short paid or erroneously refunded otinput tax aedit wrcmgly)vailed or utilised for such periods other than th<>,e.rfJ()Vered under sub-section (0, on the person ch? with tax. (4) The service of statement under sub-section (3) shall be deemed to be service of notice under sul>-section (1) of section 73, subject to .the condition that thegrounds relied upon in the said statement, excepfthe ground . <i ? or any willful-misstatement or ?n of .· tacts to evade ?for periods .other than thQ$e .. ? under sub-section (1) are the .same. as'are mentioned in the earlier notice: ' . . ' .. < (5) The person chargeable with tax may, before service of notice under sub-section (1), pay the amount of tax along with ?fftSI payable under section and a. penalty equivalent to fifteen pa cent of suclftax on the basisof his own ascertainment of such tax or the tax as ascertained by the proper.officer and inform the proper offi.cel' ? writing of sus)l payment '( { 6) J,\le proper office,;. on r?pt of su? informatj.on, shall i}lot serve any nc>Jice un? .sub-?on (1), iJJ:. respect of the tax so ?d or any penalty payable.? the provisions of this Act or the rules made ther?\W?r. Dettrmination of tu not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful-nilsstatement or suppression of facts.

(7) Where the proper officer is of the opu,uon thatthe amount paid under sub-section (5) falls short of the arliount actually payable. he· shall proceed.to issue the 11&.ce aS provided for in· sub-section (1) bl·;respect of siich iltnount which1alJsshort· of the ;IDlO\lllt actually payable. ,. ·• d, .. ?:· -r ., (8) 'Wh??t anypmon chargeable with. tax wider sub- ??P (J)pays the said.? along with in? payable ·un? ?on SO.and a penalty equivalent to twenty five · ?i '?nt of such tax wi? thirty ? of is.me ofthe notice,''all proceedings in respect of tlle said qotice shall be deemedto be concluded. . . ?i!'r (9)\ The proper officer shall. .. after considering the ' · representation, if any. made,? rthe. per&Ol1 chargeable with tax, determine the amount of· tax, interest and pepalty due fromsuch person and issue an order. (1 O)r 1he'Jm>per officer shall issoethe order under sub-section ·· · ;(9) within· a period of five years from the due .date for · :filmg <,f anaual return forthe financial year to which the tit.·aot paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous mund. Cpl ·\VJiF aD)'.person 5dved widi an order,'tssued under h,. ,,,t: .???on (9) pays !}le tax along with iJlterest payable . ·· · tlier.?.911del" section and a penalty equivalent to fifty per;cent of S\!ch tax within thirty days of e<>mmtmication of the .or.4er., 'all proceedings·uj respect of the said notice · shallbe deemed to be conduded, . Explanation 1.-: For the purpqses of section73 andthis ?on, - (i) . the ?ression .'"all proceedings,. in rqpect of the said flptice'" shall not include proceedings under section 132; (ii) where the notice under the same proceedings is issued to the main person liable to.pay tax·•4nd some other persons, and such proceedings against the main person ha.-e been conduded!ihder section or sedlon 74, t1te Rroceedings agamsfall t1ie perions liable ufpay penalty :'Jmder sections122, 125,129 and130 are deemed to be :e '.d>hcluded. · i ·

Explanation 2.- For the . purposes of this Act, the expression "suppression" shall mean non-declaration of facts. or information which a taxab?person is ttqwred,todeclare in the return, statement, report ot my· other ?fufuished undtr this Actor the rules niade .thereunder, or failure to fwn!sh_? information on being asked for, in writing, by th.e proper officer. 75. (1) ·Wn?t}if ?ce bf notice or ?'(or<ierJS stayed by an ordefof a court or Appellate TribUQ..t, .the period of such stay shall be excluded in computing the period ?pecified in sub-sections (2) and (10) ?f ?on or sub-se¢ons (2) and (IO) of seqion 74, ? :tlje ¢ase may be. . . ; .. ·· • .. ;-,, ,.,, General provisions relating to determination oftax. (2) W]lere any.? Authority or Appellate Tribunal or. court am? tltet, the notice issued. under sub- . section (1) of? 74il not SQStainaWe for the reason tbaluhe charge(oHraud or any wilful mis IDkmeator supp.-ession of facts to evade tax has not been established against the person to whom· the notice was iuued, · the p? officer shall.?.•.tJie tq.? by :$II.Ch person, cleeming as if the. J1Qtice were•iuued undersuJ>.. section (1) of section 73. · (3) Where any order is req? ? l>e issued in J)W'S\lanCe . ()fthe direction .or tlie?peJJ?':Authority ?.r,.?e . 'μibunal or a co?. such order shall be ?uicfWithin two years from .. the .date. ofcommunicatio.q of the said .. direction. · (4), -An' opport\lllity of·beJring shall be granblcl where a requestis received in writing from the ?oon chargeable with tax or penalty, or.where any adverse decision is contemplated against such person. (5) 'Ihe proper officer shall, if,)?cient ? is shown by the person chargeable with tax, gtanttime.to the said person an,4 adjown the hearing for reasons to be recorded in Jri?png: . . Provided that no such adjolitnnient shall be panted for more than three times to a person during the proceedings. · ·(6' The proper officer, in his .oid? shall set out die 'relevant facts and the WIS of his decision. · ';,

(7) The amount of tax, interest and. penalty demanded in · the order shall not be in excess of.the 8.IDO\Jllt specified in the notice,and m, demand .,Mlall_be.con6nned on the grounds otherthan the gro??cifiedJn the notice. (8) Where the Appmate Autborit)! .. or Appellate Tribunal or court modifies the amount of tax determined by the proper offifer,. t.h? ammmt (?f ? ??- -?ty shall stand modified accordingly.taking into account the amount of tax so modified. (9) The in?rest on the tax short paid or not ?d shall be payablewhetberornotspedfiedbi the order determining the tax liability. · · (10) 1be ad?diattion proceedings shall be deemed to be concluded, ifthe order is riot isSlled wftbinthree years as provi4ed·for in sub-section (10) of section or within fiw'years as provided for in sub-section (10) of section ,14 •. (11) .An issue on which. rfhe .. Appellate Authority or the ?· '1nbunal or the High' Court 1- given its decision which Is prejudicial to the interest of revenue in some other proceedings and an appeal to the Appellate . Tribunal or the High Court or the SμpJem.e Court api.tiSt such declsic)11 oft.J;,e.Appellate Authority-or the ApptJJate '1ril>unal • or the· High Court is •. ?Fnding. the pen? ? 1,etween tile date. ofthe decision ofthe Appellate' Authortty·andthat o( the Appellate Tribunal or the date ofdeclsi011 ofthe Appellate 'tribunal and that ofthe High Court or the date of the decision of the High Court and _that of the Supreme Coμrt shall be excluded in computing the peri<M.l referre<l to in sub-section (10) of section73 or sub-section(lO) of section where proceedings are h)iijated by .. ?y of issue of a ?w cause notice undersaid sections. . . (12) Notwi?dlng &ri)"tlilng contained in section or section74, where lU1Y • amount of ael(.:assessed tax in accordance·with at return furnished ·under· section remains unpaid. either wholly or partly.· or any amount of interest payable on such tax remains unpaid, the same sbal1 be recpvered under the provisions ofaection • .. {13) Where any penalty is· imposed under section73 or '"'?11?4, no penalty fOT the .same .?,Cl>I' omission shall be imposed on the saJDe person ? any other provision of this Act. ·

76. (1) Notwitqstanding anything J? the contrary contained in any .or?r or direction pf any Appellate Am:hority or Appell .. re Tubunalor p>9{t.Qf in any other provisi<?D$ of this Act or the rules made ther? or. anyotlie, ij.wfor the time being in force, every person who has collected from any other person ? ?owtt"'as'representing the tax under this Act. and has not paid the said amount to the Goveminent. ·shall· fo,;thwith pay the. saidamourit to the Government. irrespective of whether the supplies in respect of which such amount was collected are taxable or not. (2) Where any amount :is required 'to be paid to the Government under sub-section (1), and which has not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause why the said amount as specified in the notice, should not be paid by himrto theGovernmentand why a penalty et}Uivalent to the ahiount·specified in the notice should not be imposed on him under the •provisions of this Act. (3) The · proper officer shall,· . after considering the representation,· if any, ma.e •by the person on· whom the notice is served under•sub-section (2), .. determine the amount due from such person and'thereupon such person shall pay the amount so determiried. (4) The person referred to in sub-section (l) shall in addition to paying· the amount referred to ul' sub-section ( l) or sub-section (3) also beliable to pay· interest thereon at the rate specined un?r section. from the date such amount was collected by him. to the date such amount is paid by him to the Government. (5) An opportunity of he? shallbe gran? .where a request is received in writing from the person to whom the notice was issued to show cause. ( 6) The proper pfficer shall ?ue an order within one year fromthe date of issue of the notice. (7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal, the period of such -stay shall be excluded in computing th.e period of o,:ie ye,r. (8) The proper officer, in.his order, shall set out the relevant facts and the basis·ofhis decision.' /-i<> Tax collected.but not paid to Government. ·

(9) The amount paid t() the Government under sub-sett.ton (lJ or sub-section'(3) shallbe"?? against'tlte? pa?ble, if any, by the, persotfin'relation to the supplies referred to in sub-secfion (1). · . . _, ?- ( 10). Where any surplus is left afltrtlie ?ustm?t Wlcler sub- section (9), the amount of suqi surplus shall either be credited to μte Fund or refunde? to the person who bas home the iacidence of such amount ( 11) The person who has borne the incidence of the amount may apply for the refund of.the same in accordance? .. the provisions of section 54. · •· 77. (l) A registered per50l1 who bas paid the central. tu and State tax on a tranSaction considered by ·binl to be an intra-State, supply, but which is · subsequently held to be an inter-State supply,. shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed. · (2) A registered person wbo ba,,.paid integrated tax on a transaction .considered by,·:hiJn to be an inter-State supply. but which. is ..ubsequently held to be an intra-.,. State supply, shall.not be required to pay any interest on the amount of Staie tu.payable. . Tax wrongfully ? and paid to ec. Government or

( 1) All ·officers of· Police, •Railways,• CUst? .. and those Officers to assist pn engaged in the· collection of bind tevenll'.e, including oflic:ers. village officers, and officers of central tax and officers of the Union tenitory. tax? assist the proper officers in the implementation, of'this Act. 'IheGovernment: m?y s.. by. notification, .: empower and require any other class of o#.ficers. to. assist the propel'. officers in. the implementation of this Act w'h?n called upon to do so by the Commissioner. 87 CHAPTER XV DEMANDS AND RECOVERY

(1) Where it appears to the pr911er officer that any tax has not· been paid or short paid or erroneously refunded, or where input tax credit h? ?h'wrongly availed or utilised for any reason, othertli,ait]he Jeas<>n of fraud or apy wilful-111isstatement or s'1:ppression of facts to evade tax, h.e shall serve notice <>n ?e ?on. charg?le with tax whichhas not been so paid or whl,ch hasbeen so short paid or to whom the refund has erroneously . been made, or who has wrongly availes} or utilis,ed input tax credit, requiring him to show cau?e wl,iy he should not pay'the.amount specified in the notice along with interest payable thereonunder section 50 and a penalty leviable underthe provisions ofthis Act or the rules made thereunder. (2) The proper officer shall issue the notice under. sub- section (1) at least three months prior to the time limit specified in sub-section (10) for issuance oforder. (3) Where a notice hasbeenissued for any period under sub-section (1 ), the proper officer may serve a statement, containing the detailsof tax not paid or. short paid or erroneously refunded or input tax Q'e(tit wrongly ivailed or utilised forsuch periods other thanthose covered under sub-section (1), on the person chargeable with tax. ( 4) The service -of such statement shallbe deemed to be · service of notice on such ·person under?on (l), subject to the condition that the grounds relied upon for such tax periods otherthan· th? coveredundetsub- section (1) are the same as are mentioned in the earlier notice. (5) The person chargeable with tax may, before service of notice under sub-section (1) or, as the case may be, the statement under sub-section (3) pay the amount of tax along with interest payable thereonunder section50 on the basis ofhis own ascertainment of such tax or the tax as ascertained by the proper officer andinform the proper officer in writing of such payment. Determination of tax not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised for any reason other thanfraud or any wilful misstatement or suppression of facts. 88 (6) The proper officer, on receipt of such information, shall not serve any notice under sub-section ( 1) or, as the case may be, the statement under sub-section (3), in respect ofthe tax so paid or any penalty payable, under the . provtsions of μtis J\ct or the rules made there?der. (7) Where the J?f? officer is of the, 9pmion that the amount paid 'Wder sub-section (5) falls short of the amount actually .payable. he shall proceed to issue the notice .as provided for in sub-section (1) in respect of such· amount ·.which falls short of the amount actually payable. · . (8) Where. any person chargeable with tax. under sub- section (l'f or sub-section (3) pays the said tu along with interest payable under section 50 within thirty days of issue of show cause notice, no penalty shall be payable and all proceedings in respect of the said.notice shall be deemed to be concluded. (9) The proper officer shall, after considering the · representation. if any. made by person ?geable with tax. determine the amount of tax. in? and a penalty equivalent toten per cent of tax or ten thousand rupees. whichever is higher, due from such person and .issue an order. · ( 1 O) · Toe proper officer shall isSue the-0rder under sub-section (9),Mthin three years from the due date for filing of annuat .ttturn for the financial year to· which the tax not paid9r short ppd or input. tax credit wrongly availed or utilised relates to. or within three years from the date of erroneous refund. (11) Notwithstanding anything .contamed in sub-section (6) or.sub-section (8), penalty under sub;-;section (9) shall be payable where an.y amount of self-assessed tax or any amount,..collected ?}? has not been paid within a period of thirty days from the due date of payment of such tax. 89

(1) Where. it appears to the prpper officer ?taIJJ.tax has llQt ? paid or short paid or erroneously. refunded Of! ?here input tax crajit has been wrpl)gly availed or utilised by reuon ?f fraud, or any willful-mis.statement or suppression of facts to ?e tax, he shag sei:y,e notice on the person chargeable,with tax which.? 11ot been so paid or which has been so short paid or to whom the refund has erroneously been made, or who. has wrongly availed or. utilised input tax· credit, ?utring bim to show cause ?hy he should notpay the a11.1buntspecified in the notice ?ong with interest payablith?tto,? under section 50 and a penalty equivalent to the tat specified in the notice. ·, . · (2) 'Ihe proper officer. shall issue the notice under sub- section (1) at least .six months prior to the time limit specified in sub-section. (10) for issuance of otder. (3) Where a. notice has been issuedfor any period under sub-section (1 ), the proper officer may serve a statement, containing the cletails of taxnot paid or short paid or erroneously refunded otinput tax aedit wrcmgly)vailed or utilised for such periods other than th<>,e.rfJ()Vered under sub-section (0, on the person ch? with tax. (4) The service of statement under sub-section (3) shall be deemed to be service of notice under sul>-section (1) of section 73, subject to .the condition that thegrounds relied upon in the said statement, excepfthe ground . <i ? or any willful-misstatement or ?n of .· tacts to evade ?for periods .other than thQ$e .. ? under sub-section (1) are the .same. as'are mentioned in the earlier notice: ' . . ' .. < (5) The person chargeable with tax may, before service of notice under sub-section (1), pay the amount of tax along with ?fftSI payable under section 50 and a. penalty equivalent to fifteen pa cent of suclftax on the basisof his own ascertainment of such tax or the tax as ascertained by the proper.officer and inform the proper offi.cel' ? writing of sus)l payment '( { 6) J,\le proper office,;. on r?pt of su? informatj.on, shall i}lot serve any nc>Jice un? .sub-?on (1), iJJ:. respect of the tax so ?d or any penalty payable.? the provisions of this Act or the rules made ther?\W?r. Dettrmination of tu not paid or short paid or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any willful-nilsstatement or suppression of facts. 90 (7) Where the proper officer is of the opu,uon thatthe amount paid under sub-section (5) falls short of the arliount actually payable. he· shall proceed.to issue the 11&.ce aS provided for in· sub-section (1) bl·;respect of siich iltnount which1alJsshort· of the ;IDlO\lllt actually payable. ,. ·• d, .. ?:· -r ., (8) 'Wh??t anypmon chargeable with. tax wider sub- ??P (J)pays the said.? along with in? payable ·un? ?on SO.and a penalty equivalent to twenty five · ?i '?nt of such tax wi? thirty ? of is.me ofthe notice,''all proceedings in respect of tlle said qotice shall be deemedto be concluded. . . ?i!'r (9)\ The proper officer shall. .. after considering the ' · representation, if any. made,? rthe. per&Ol1 chargeable with tax, determine the amount of· tax, interest and pepalty due fromsuch person and issue an order. (1 O)r 1he'Jm>per officer shall issoethe order under sub-section ·· · ;(9) within· a period of five years from the due .date for · :filmg <,f anaual return forthe financial year to which the tit.·aot paid or short paid or input tax credit wrongly availed or utilised relates to or within five years from the date of erroneous mund. Cpl ·\VJiF aD)'.person 5dved widi an order,'tssued under h,. ,,,t: .???on (9) pays !}le tax along with iJlterest payable . ·· · tlier.?.911del" section 50 and a penalty equivalent to fifty per;cent of S\!ch tax within thirty days of e<>mmtmication of the .or.4er., 'all proceedings·uj respect of the said notice · shallbe deemed to be conduded, . Explanation 1.-: For the purpqses of section73 andthis ?on, - (i) . the ?ression .'"all proceedings,. in rqpect of the said flptice'" shall not include proceedings under section 132; (ii) where the notice under the same proceedings is issued to the main person liable to.pay tax·•4nd some other persons, and such proceedings against the main person ha.-e been conduded!ihder section 73 or sedlon 74, t1te Rroceedings agamsfall t1ie perions liable ufpay penalty :'Jmder sections122, 125,129 and130 are deemed to be :e '.d>hcluded. · i · 91 Explanation 2.- For the . purposes of this Act, the expression "suppression" shall mean non-declaration of facts. or information which a taxab?person is ttqwred,todeclare in the return, statement, report ot my· other ?fufuished undtr this Actor the rules niade .thereunder, or failure to fwn!sh_? information on being asked for, in writing, by th.e proper officer.

(1) ·Wn?t}if ?ce bf notice or ?'(or<ierJS stayed by an ordefof a court or Appellate TribUQ..t, .the period of such stay shall be excluded in computing the period ?pecified in sub-sections (2) and (10) ?f ?on 73 or sub-se¢ons (2) and (IO) of seqion 74, ? :tlje ¢ase may be. . . ; .. ·· • .. ;-,, ,.,, General provisions relating to determination oftax. (2) W]lere any.? Authority or Appellate Tribunal or. court am? tltet, the notice issued. under sub- . section (1) of? 74il not SQStainaWe for the reason tbaluhe charge(oHraud or any wilful mis IDkmeator supp.-ession of facts to evade tax has not been established against the person to whom· the notice was iuued, · the p? officer shall.?.•.tJie tq.? by :$II.Ch person, cleeming as if the. J1Qtice were•iuued undersuJ>.. section (1) of section

(1) Notwitqstanding anything J? the contrary contained in any .or?r or direction pf any Appellate Am:hority or Appell .. re Tubunalor p>9{t.Qf in any other provisi<?D$ of this Act or the rules made ther? or. anyotlie, ij.wfor the time being in force, every person who has collected from any other person ? ?owtt"'as'representing the tax under this Act. and has not paid the said amount to the Goveminent. ·shall· fo,;thwith pay the. saidamourit to the Government. irrespective of whether the supplies in respect of which such amount was collected are taxable or not. (2) Where any amount :is required 'to be paid to the Government under sub-section (1), and which has not been so paid, the proper officer may serve on the person liable to pay such amount a notice requiring him to show cause why the said amount as specified in the notice, should not be paid by himrto theGovernmentand why a penalty et}Uivalent to the ahiount·specified in the notice should not be imposed on him under the •provisions of this Act. (3) The · proper officer shall,· . after considering the representation,· if any, ma.e •by the person on· whom the notice is served under•sub-section (2), .. determine the amount due from such person and'thereupon such person shall pay the amount so determiried. (4) The person referred to in sub-section (l) shall in addition to paying· the amount referred to ul' sub-section ( l) or sub-section (3) also beliable to pay· interest thereon at the rate specined un?r section. 50 from the date such amount was collected by him. to the date such amount is paid by him to the Government. (5) An opportunity of he? shallbe gran? .where a request is received in writing from the person to whom the notice was issued to show cause. ( 6) The proper pfficer shall ?ue an order within one year fromthe date of issue of the notice. (7) Where the issuance of order is stayed by an order of the court or Appellate Tribunal, the period of such -stay shall be excluded in computing th.e period of o,:ie ye,r. (8) The proper officer, in.his order, shall set out the relevant facts and the basis·ofhis decision.' /-i<> Tax collected.but not paid to Government. · 94 (9) The amount paid t() the Government under sub-sett.ton (lJ or sub-section'(3) shallbe"?? against'tlte? pa?ble, if any, by the, persotfin'relation to the supplies referred to in sub-secfion (1). · . . _, ?- ( 10). Where any surplus is left afltrtlie ?ustm?t Wlcler sub- section (9), the amount of suqi surplus shall either be credited to μte Fund or refunde? to the person who bas home the iacidence of such amount ( 11) The person who has borne the incidence of the amount may apply for the refund of.the same in accordance? .. the provisions of section

(l) A registered per50l1 who bas paid the central. tu and State tax on a tranSaction considered by ·binl to be an intra-State, supply, but which is · subsequently held to be an inter-State supply,. shall be refunded the amount of taxes so paid in such manner and subject to such conditions as may be prescribed. · (2) A registered person wbo ba,,.paid integrated tax on a transaction .considered by,·:hiJn to be an inter-State supply. but which. is ..ubsequently held to be an intra-.,. State supply, shall.not be required to pay any interest on the amount of Staie tu.payable. . Tax wrongfully ? and paid to ec. Government or SI Government.

Any amount payable_bj a.taxable person in pursuance of an Initiation of recomJ order passed under this Act shallbe paid by suchpefSOll ? proceedings . . a period of three months from the d.ie of service of such order failing which recovery proceedings shall be initiated: Provided that where the proper officer considers it expedient in the interest of revenue, he may, for reasons to be recorded in writing, require .. the said taxable person to make. such.J,>ayment within such .period less 'than a period of three months as'inay be specified by him. 79. (1) Where any amount. payable by a ?n to the · Recovery of tax.. Government under any of the provisions 'of this Act or the rules made thereunder is not paid, the proper officer shall proceed to recover the amount by one or more of the following modes, namely:- (a) the proper officer may deduct or may requife,any< other specified officer to deduct the amount so payabl?;from any :.rooa1ey owing to such perwn: which iμay be und? th? control of the proper officer or such other specified officer;

(b) , the proper officer. may recover or may require any other ?ed · officer :to rec:over the amount so payable by)?'·and ·selling any goods belonging to ?th '? which ? under the control ofthe proper officer or such other specified officer; · · · · " " · t..·s:· -'? •CJ (c) (i) the proper offic? may, by a? in writing. require any ot.ber ?l'Sf>n ?m?om money· is due or may beco?eaue to ?ch person or who hol?or,Dlay ?ubsequ?ily,hold money for or on.?unt'of.S9Ch,?- to pay to the Government s: eith.er .foJ1bwith upon the money;?mu:g,due 0( being held, or , within tl;le tip:le sPFcified in tp.e notice not being before the money becqmes due or is held, 'so mucbQf the money as is sufficient to pay the amount ?ue·froni·sucll person·or the whole ofthem<>geywl)en ifisequal to or less than that amount; (ii) every pepon to :whopi the DQtice is issued under sub-claμse, 0) ,, shall be bound to comp)¥ with sucb, nqti? and in particular, wher4 any such. ffl>tite is issued to a post o?. banking oompany or an insurer, it shall not be necessary to produce any pass book. deposit receipt. policy or any other documentfor the, purpose of any entry, 'endorsement or the·like being made before payment is made,nutwlthstanding any rule, practice or requirement to the contrary; (iii) in case the person to whom a··· notice under. sub-clause· (l) ··has been issued, fails to make the payment in pursuance thereof to the Goeernment, be'·· shall be deemed to be a defaulter 1n respect ofthe amount specified in the notice arid . all the consequences of this· Act or the rulei made thereunder shall f<>lld'w; (iv) the officer issuing a notice ? sub-clause (i) may,.?t any Um,1t,"'1llt:nd.,.fN··I'.? such. notice, or .. ?n,d the . time fQI'· roaking any payment in pqrswuice ofthe notice; .

{v) any person making any payment in col'.l)plia.nce. with no? issued un4er sub- cl?use. (j.) shaU be de«;? to have made the paym?nt VJ1<\?J'R.?,,4uthority of the person in default. 8RA. .. $uc,h;?ent betng credited ffi, ,? Gpv??l·•• .shall be 'deemed to constitute a good and sufficient disql.arge of the liability of such person to the person in default to the extent of the amount s?fied r?' the receipt; {vi) a11y:person .. 4isc!iarging /any liability to the person in default after service on him of the notic?. issued under . sub-clause. (i) shall be .persona.Py. liable· to 'the Government to the · ?ent · of the liability d!?harged or to the ?eht of the. J!?bility of the person !ii drfault for tax, ·interest and penalty, whichever is less; (vu) wJ;i,er.e, ? .. ??. on whom a notice is served und.?I sub:,cla??(i) pWve$ to the: satisfaction of the officer _'j?ulflg the. n<>pce that the money demanded. or. ?y part thereof was not due tol:he·person inddault orthat he did not hold any money for or on account of the person in default, at the tune the notice was served on>him, nor is the money demanded or any part,:,thereof, likely ta become due to the said person or be held for o'r on account. of such · p.eqJOn, · nothing. contained in this section shall be deemed to require the person on whom·the·.•hotice has been served ·to pay tQ the Government any sudt money or part thereof; ( d) the proper offi¢fr Jllay, in accordance with the rules to be made in this behalf, di? any movable or immovable property belongillg to or under the control of sucb .. p?pon, .. apd . cletain the same until the amount payable is paid; and in case, any part of the said amount payable or of the cost of the distrc:? or keeping of the. pr?perty, remains unpaid· for a period of thirty ?y$. •ext after any such distress, may cause the sald property to be sold andwith the·proceeds of such ?e. may sati.Sfy the amount payable atia the costs mduding cost of sale .. remaihi.ng unpatd,,and shall ?ndet the m.rplus amount, if any; to,su.chfei'$on;

2ofl974 (e) the proper -0fficer may prepare a certificate signed by him?· the amoUI1t· due from such personind send itto the Collectorofthe district in ·•which such person owns any property or resides or carries on his business or,to-any officer authorised by the Government and the said Collector or the said officer, on receipt ofsuch certificate. shall p:roceetf to· recover from such person the amount specified thereunder as if it ·were an· arrear of land revenue; (0 Notwithstanding anything contained in the Code of Criminal Procedure, 1973, the proper officer may file an application · to the appropriate Magistrate and such Magistrate shall proceed to recover from such person the amount specified thereunder as if it were a fine imposed by him. (2) Where the terms of any bond or other Instrument executed under this Act or any rules or regulations made thereunder provide that ?y amount dueunder such instrument may be recovered in the. manner laid down in sub-section (1). the Fount may, without prejudice to any other mode of recovery, be recovered in accordance withthe provisions of that sub-section, · (3) Where any amount of tax, interest or penalty is payable by a person to the Government under any of the provisions of this Act or the rules made thereunder and · which remains unpaid, the proper officer of central tax, during the course of recovery of said tax arrears, may . recover the amount from the said person as if it were an arrear of central tax and credit the amount so recovered to the account ofthe Government. (4) Where the amount recovered under sub-section. (3). is less than the amount due to the Central Government and State Government, the amount to be credited to the account ofthe respective Governments shall be in proportion to the amount due to eaca such Government 80; On an application filed by a taxable person, the Commissioner .Payment of tax and other may, for reasons to be recorded in writing, exten? the time amount iD installments.- for payment or allow payment of any amount due under this Act, other thanthe amount due as per the liability self-assessed in any return; by such person in monthly installments not exceeding ?enty four. subject' to payment 'of interest under 'section 50, subject to· such conditions and limitations as may be prescribed:

Provided that where there is def1"1t ,in pa}'ll)fflt of any one installment on its due date, the whple puts? balance payable on suchdate shall . hffiome due . and, payabl? forthwith. and· shall, without any .further notice being served on the .person, be liable for recovery. 81. Where. a perso11, after any amounthas beco1I1e,due from him, creates a? on or parts "With the property belonging to him or in his possession by,way of sal?, mortgage, exchange. or any other modeof transfer whatsoeverof any of his properties in favourof any other person with the intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in. respect of any tu or any other sum payable by thesaid person: Provided that, such charge or transfer shall' lipt be void if it is madefor adequate consideration, in good fai? and without notice : of the pendency of such proceedings under this Act or without notice of suclitax orother sum payable by thesaid person, -9r with the previouspermission. of the proper officer. I Transferof property to? void in certain cases. I I il of2016 82. Notwithstanding anything to the COlltrary contained in.?Y 1',w Tu to be first charge on for the time being in. force, save u, .o?erwise provided in. the property. Insolvency and Bankruptcy Code, 2016, any amount gayable by a.taxable person or·any other person on· account of tax. in?or.penaltywhich he is liable !OP,Y to the Government shall be a first giarge on the property of such taxable person or such?on. · ·· 83. (I) Where during the.pendencyofany proceedings under section62 or section or secijon.,?.or section or section or section .74, the CQ?ioner is of the opinion that forthe purpose of protecting the interest of the Government revenue, itis necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to thetaxable person in'such manner as·maybe prescribed. (2) · Every such provisional attachmentshall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (I). Pnwisional attachment-, protect revenue in certaill cases. 84. W11e.re a.'1y notice ofdemand in respect of any tax,, penalty. C'.ontinuation and interest or any other amount payable under this Act, (ht:reafter validation of certain · h' · r. ed " · d ") d recovery proceedin= m t is section re,etr to as Govemment ues • is serve i,- uponany taxable person 'or any other person and any· appeal or revision ?plication is filed. or •. any. other proceedings is inJti?ed in re.speptof such Government dues, then-

(a) wheresuch Government dues are enhanced in such appeal, .. revis!<.),Jl or other proceedings. the Commissioner shall serve upon the taxable person or any other person another notice ofdemand in respect of the amount by which such Government dues are enhanced and any:.3covery proceedings In ?lation to ·• such Goveriunent dues as are covered by the notice of demand ?ed upon him. before the disposal ofsuch appeal. revision or other proceedings m.ay. without tht, senice of any fresh notice of demand. be·continued· from the stage at which such proceedings· stood,blunediately before suqh disposal; (b) ,.where such Government dues are reduced in such appeal, revision·or in other procee<finss- (i) it shall not.be riecessaryfor the Commissioner to serve up.,n the 'taxable person a fresh notice of demand; (ii) the Q>mm.issioner shall give intimation of such reduction to him and to the appropriate authority with whom recovery proceedings is pending;. (iii) any recovery proceedings initiated on the basis of the demand served up<>n him prior to the· disposal of such appeal, revision or other proceedings may becontinued in relation to theamount so reducedfrom the stage at which such proceedings stood immediately before such disposal.

CHAPTER XVI LIABILITY TO PAY IN CE&TAIN CASES 85. . ( l) Where a taxable p;san, liable to pay tax under thisAct, transfers his bQSiness in whole or in part, by· sale, gift, lease, leave and license, hire .or in any other manner whatsoever, the taxable person and the ?n to whom the business is so transferred shall. jointly and severally, beliablewhollyortotheextentofsuchtransfer,topaythe tax, interest or any penalty due from the taxable person up to the time of such transfer, whether such tax, interest or penalty has been determined before such transfer, but has remained unpaid or is determined thereafter. (2) Where the transferee of a business referred to in sub- section ( l) carries on such business either in his own name or. in some other name, he shall be liable to pay tax on the supply of goods or services or both effected by him with etfect &om the date of such transfer and shall. ifhe is a registaed persou under this ?,apply Within the presaibed time for amendmalt ofms certificate of registration. Liability in case of transfer of busineSS. 86. Where an agem, supplies or receives any taxable goods on Llability of agent and behalf of his principal. such agent and his principal shall, principal. joimly and severally, be liable to pay the .tax payable on· such goods under, this

(1) Where any amount. payable by a ?n to the · Recovery of tax.. Government under any of the provisions 'of this Act or the rules made thereunder is not paid, the proper officer shall proceed to recover the amount by one or more of the following modes, namely:- (a) the proper officer may deduct or may requife,any< other specified officer to deduct the amount so payabl?;from any :.rooa1ey owing to such perwn: which iμay be und? th? control of the proper officer or such other specified officer; 95 (b) , the proper officer. may recover or may require any other ?ed · officer :to rec:over the amount so payable by)?'·and ·selling any goods belonging to ?th '? which ? under the control ofthe proper officer or such other specified officer; · · · · " " · t..·s:· -'? •CJ (c) (i) the proper offic? may, by a? in writing. require any ot.ber ?l'Sf>n ?m?om money· is due or may beco?eaue to ?ch person or who hol?or,Dlay ?ubsequ?ily,hold money for or on.?unt'of.S9Ch,?- to pay to the Government s: eith.er .foJ1bwith upon the money;?mu:g,due 0( being held, or , within tl;le tip:le sPFcified in tp.e notice not being before the money becqmes due or is held, 'so mucbQf the money as is sufficient to pay the amount ?ue·froni·sucll person·or the whole ofthem<>geywl)en ifisequal to or less than that amount; (ii) every pepon to :whopi the DQtice is issued under sub-claμse, 0) ,, shall be bound to comp)¥ with sucb, nqti? and in particular, wher4 any such. ffl>tite is issued to a post o?. banking oompany or an insurer, it shall not be necessary to produce any pass book. deposit receipt. policy or any other documentfor the, purpose of any entry, 'endorsement or the·like being made before payment is made,nutwlthstanding any rule, practice or requirement to the contrary; (iii) in case the person to whom a··· notice under. sub-clause· (l) ··has been issued, fails to make the payment in pursuance thereof to the Goeernment, be'·· shall be deemed to be a defaulter 1n respect ofthe amount specified in the notice arid . all the consequences of this· Act or the rulei made thereunder shall f<>lld'w; (iv) the officer issuing a notice ? sub-clause (i) may,.?t any Um,1t,"'1llt:nd.,.fN··I'.? such. notice, or .. ?n,d the . time fQI'· roaking any payment in pqrswuice ofthe notice; . 96 {v) any person making any payment in col'.l)plia.nce. with 4 no? issued un4er sub- cl?use. (j.) shaU be de«;? to have made the paym?nt VJ1<\?J'R.?,,4uthority of the person in default.

Where. a perso11, after any amounthas beco1I1e,due from him, creates a? on or parts "With the property belonging to him or in his possession by,way of sal?, mortgage, exchange. or any other modeof transfer whatsoeverof any of his properties in favourof any other person with the intention of defrauding the Government revenue, such charge or transfer shall be void as against any claim in. respect of any tu or any other sum payable by thesaid person: Provided that, such charge or transfer shall' lipt be void if it is madefor adequate consideration, in good fai? and without notice : of the pendency of such proceedings under this Act or without notice of suclitax orother sum payable by thesaid person, -9r with the previouspermission. of the proper officer. I Transferof property to? void in certain cases. I I il 31 of2016

Notwithstanding anything to the COlltrary contained in.?Y 1',w Tu to be first charge on for the time being in. force, save u, .o?erwise provided in. the property. Insolvency and Bankruptcy Code, 2016, any amount gayable by a.taxable person or·any other person on· account of tax. in?or.penaltywhich he is liable !OP,Y to the Government shall be a first giarge on the property of such taxable person or such?on. · ··

(I) Where during the.pendencyofany proceedings under section62 or section 63 or secijon.,?.or section 67 or section 73 or section .74, the CQ?ioner is of the opinion that forthe purpose of protecting the interest of the Government revenue, itis necessary so to do, he may, by order in writing attach provisionally any property, including bank account, belonging to thetaxable person in'such manner as·maybe prescribed. (2) · Every such provisional attachmentshall cease to have effect after the expiry of a period of one year from the date of the order made under sub-section (I). Pnwisional attachment-, protect revenue in certaill cases.

W11e.re a.'1y notice ofdemand in respect of any tax,, penalty. C'.ontinuation and interest or any other amount payable under this Act, (ht:reafter validation of certain · h' · r. ed " · d ") d recovery proceedin= m t is section re,etr to as Govemment ues • is serve i,- uponany taxable person 'or any other person and any· appeal or revision ?plication is filed. or •. any. other proceedings is inJti?ed in re.speptof such Government dues, then- 99 (a) wheresuch Government dues are enhanced in such appeal, .. revis!<.),Jl or other proceedings. the Commissioner shall serve upon the taxable person or any other person another notice ofdemand in respect of the amount by which such Government dues are enhanced and any:.3covery proceedings In ?lation to ·• such Goveriunent dues as are covered by the notice of demand ?ed upon him. before the disposal ofsuch appeal. revision or other proceedings m.ay. without tht, senice of any fresh notice of demand. be·continued· from the stage at which such proceedings· stood,blunediately before suqh disposal; (b) ,.where such Government dues are reduced in such appeal, revision·or in other procee<finss- (i) it shall not.be riecessaryfor the Commissioner to serve up.,n the 'taxable person a fresh notice of demand; (ii) the Q>mm.issioner shall give intimation of such reduction to him and to the appropriate authority with whom recovery proceedings is pending;. (iii) any recovery proceedings initiated on the basis of the demand served up<>n him prior to the· disposal of such appeal, revision or other proceedings may becontinued in relation to theamount so reducedfrom the stage at which such proceedings stood immediately before such disposal. 100 CHAPTER XVI LIABILITY TO PAY IN CE&TAIN CASES

. ( l) Where a taxable p;san, liable to pay tax under thisAct, transfers his bQSiness in whole or in part, by· sale, gift, lease, leave and license, hire .or in any other manner whatsoever, the taxable person and the ?n to whom the business is so transferred shall. jointly and severally, beliablewhollyortotheextentofsuchtransfer,topaythe tax, interest or any penalty due from the taxable person up to the time of such transfer, whether such tax, interest or penalty has been determined before such transfer, but has remained unpaid or is determined thereafter. (2) Where the transferee of a business referred to in sub- section ( l) carries on such business either in his own name or. in some other name, he shall be liable to pay tax on the supply of goods or services or both effected by him with etfect &om the date of such transfer and shall. ifhe is a registaed persou under this ?,apply Within the presaibed time for amendmalt ofms certificate of registration. Liability in case of transfer of busineSS.

Where an agem, supplies or receives any taxable goods on Llability of agent and behalf of his principal. such agent and his principal shall, principal. joimly and severally, be liable to pay the .tax payable on· such goods under, this Act.

( l) When two or more companies are amalgamated or merged in pursuance of an order of court or of Tribunal or otherwise and the order is to take effect from a date earlier to the date of the order and any two or more or' such companies have supplied or received any goods or services or both to or from each other during the period commencing on the date from which the order takes effect till the date of the order, then such transactions of supply and receipt shall be included in the turnover of supply or receipt of the respective companies and they shall be liable to pay tax accordingly; (2) Notwithstanding anything contained in the said order, for the purposes of this Act, the said two or more companies shall be treated as distinct companies for the period up to Ole date of the said order and the registration certificates of the said companies shall be cancelled with effect from the date of the said order. Liability in case of amalgamation or :........J of companies. .._..,

of2016 88. (1) .W,hen any coin:vany is being wowid up whether under Y' the. 9!4?H; of, a cpllf!. 9r Tribunal· or: ?We?e. eyFry . perso? appointed as receiver of any ?set? of a company (here??er ip. this .sec?on referrefto ? .the "liqllida?or"; shall, within thirty days ?? .. his appointment, ,gj.v intimation ofhis appointment to the Commissioner. ' (2) The Commissioner shall,' after making such inquuf i»-, callmg forsuch information as ht may d? fit, nofffy1' the .liquidator within three months·irdm 'the datJ1bi --, which he receives intimation '.bf th?"'appomtment of''-: the, liquidator, the amount- which m, !lie opinion of the -: Cemmissioner wouldbe sufficientto·wo?.de for any tax, r' --. iateress.or penalty which is then, orJ?Jikely thereafterto become, payablebythe company. ·, r:l Li?lplity in case of cothpany in liquidation. of2013 (3)' · When::any privat?:cpmp?f is -wo\lll?- up'and any? · inte?est or penalty deter?? under this Act on dit, ,,f??J>any for any period, Wheter \)ef?re 0? ,in the CO';'fSe r : of?t ? its Jiq?clatiOJ1, ?not be/eCoVered, then every person who wasa dir?ftor of such tp1np'any at any time,_ during the period fol whicl\ the? w? due shall, j?intlt) ?d severally s . beliable for the p??ent of sue?--?: interest or penalty, 1JIDesshe proyes to the satisfaction of the Commissioner that Supt non-recovery cannot be a¥-buted toany gross negleft, Illisfeasahce or breach.?{,( duty on his part in relation to the affairs of the company .": 89. (1) - -Notwithstanding anything contain.ed in the Companies' · 'At£ 2013;where any tax, interest or penalty due from a private company in respe? of any supply of goods or services or both for any period canriot be recovered, then, eferf petson"who was a, director of the private company > duririg such period 'shall, jointly and severaUy, b? liable ;jfor the payment of such tax, interi? or penalty μnless he: P!oves that the npn-recoverfc?i ?e ?ttlibtite?}o ?y .gross neglect, rmsfeasance or breach of-duty on his pm in relation to,the affairs ofthe company. ' (2) Where a private company iscol\'W!tted into a public .,,icompanyandthetax,interestorpenaltyinrespectofahy· supply of goods or services or both for any period during ._,: 'w?ich such company was a, privat? company cannot' ' ;, be relovered before such con.v?on, then, -nothing contained in' sub-section (lJshaU'appfy to any person who wasa director of such private company in relation h0 to any tax:, interest or penalty ifl:respect of,such supply of 1•oigoods or services or both of such private'company: ?·· . .,:;':.,,: -? .., :\ c>:;, , Prqvkkd·that nothing,containt.d in,J:W,. sμh?section shall apply to any personal penalty imposed,on sqch director. I uibility of directors of private company.

of2016 Notwithstanding any contract to the contrary ?d any 'other law for.th? time bang in force, where any firJl'l is' liable to pay any t?x/inte?est or penalty under this Act, the .1irm ? each of th??e?r?f thefirm shall. · • j?intly and severally. be liable for sucn pay,mertt: .,. Provided that where any partner retires from the firm, he or the firm, ?all intimate the,date of fCtirement ofth? sai4 partner to :;:;:r?zn??!·?:::???=::?: .: ::d?1: date of his retiren;ient.whether determined or μot, on? ?: Provided further •uilt· if no such intimation is giVeti 'within one month from the date ? retirement, the liability of sudl• partner under the first proviso shall continue until the date M'Wbich'su.ch intimation is received by the

101 (1) .W,hen any coin:vany is being wowid up whether under Y' the. 9!4?H; of, a cpllf!. 9r Tribunal· or: ?We?e. eyFry . perso? appointed as receiver of any ?set? of a company (here??er ip. this .sec?on referrefto ? .the "liqllida?or"; shall, within thirty days ?? .. his appointment, ,gj.v intimation ofhis appointment to the Commissioner. ' (2) The Commissioner shall,' after making such inquuf i»-, callmg forsuch information as ht may d? fit, nofffy1' the .liquidator within three months·irdm 'the datJ1bi --, which he receives intimation '.bf th?"'appomtment of''-: the, liquidator, the amount- which m, !lie opinion of the -: Cemmissioner wouldbe sufficientto·wo?.de for any tax, r' --. iateress.or penalty which is then, orJ?Jikely thereafterto become, payablebythe company. ·, r:l Li?lplity in case of cothpany in liquidation. 18 of2013 (3)' · When::any privat?:cpmp?f is -wo\lll?- up'and any? · inte?est or penalty deter?? under this Act on dit, ,,f??J>any for any period, Wheter \)ef?re 0? ,in the CO';'fSe r : of?t ? its Jiq?clatiOJ1, ?not be/eCoVered, then every person who wasa dir?ftor of such tp1np'any at any time,_ during the period fol whicl\ the? w? due shall, j?intlt) ?d severally s . beliable for the p??ent of sue?--?: interest or penalty, 1JIDesshe proyes to the satisfaction of the Commissioner that Supt non-recovery cannot be a¥-buted toany gross negleft, Illisfeasahce or breach.?{,( duty on his part in relation to the affairs of the company .":

(1) - -Notwithstanding anything contain.ed in the Companies' · 'At£ 2013;where any tax, interest or penalty due from a private company in respe? of any supply of goods or services or both for any period canriot be recovered, then, eferf petson"who was a, director of the private company > duririg such period 'shall, jointly and severaUy, b? liable ;jfor the payment of such tax, interi? or penalty μnless he: P!oves that the npn-recoverfc?i ?e ?ttlibtite?}o ?y .gross neglect, rmsfeasance or breach of-duty on his pm in relation to,the affairs ofthe company. ' (2) Where a private company iscol\'W!tted into a public .,,icompanyandthetax,interestorpenaltyinrespectofahy· supply of goods or services or both for any period during ._,: 'w?ich such company was a, privat? company cannot' ' ;, be relovered before such con.v?on, then, -nothing contained in' sub-section (lJshaU'appfy to any person who wasa director of such private company in relation h0 to any tax:, interest or penalty ifl:respect of,such supply of 1•oigoods or services or both of such private'company: ?·· . .,:;':.,,: -? .., :\ c>:;, , Prqvkkd·that nothing,containt.d in,J:W,. sμh?section shall apply to any personal penalty imposed,on sqch director. I uibility of directors of private company. 31 of2016 102 Notwithstanding any contract to the contrary ?d any 'other law for.th? time bang in force, where any firJl'l is' liable to pay any t?x/inte?est or penalty under this Act, the .1irm ? each of th??e?r?f thefirm shall. · • j?intly and severally. be liable for sucn pay,mertt: .,. Provided that where any partner retires from the firm, he or the firm, ?all intimate the,date of fCtirement ofth? sai4 partner to :;:;:r?zn??!·?:::???=::?: .: ::d?1: date of his retiren;ient.whether determined or μot, on? ?: Provided further •uilt· if no such intimation is giVeti 'within one month from the date ? retirement, the liability of sudl• partner under the first proviso shall continue until the date M'Wbich'su.ch intimation is received by the Commissioner.

Wh?e _the .busin,ess in ?.of which a,.1y ? interest. or P,?ty. is payable under .1flis Act. is . carried on by. any guardian, trustee .. or .ent. of a .minor or other inc;ap?tated person on.behalf ?f ?d for the benefit ofsuch minor or other incapacitated ?i thetax.iil?est or? sbal1.?llWed upo.11.and recovenal>I? fio1:;11 such,? ?pr'?t in likenianp? m,d to.?.? empt _as .1twQμlij?.??ed and i:ec;<iverable fro? any such ?or or o.ther incap? person, 'as ifhe ? a major or.capacitated Jiei'so1lan4 ? if he we? conducting me ?.himse.lf, andall the provisions of this. ?Of the ruJ? ina,Je thereunder?· ap?lf; !lCCOrclingly. 92. Wh? 1?e. estate or any pqrtiqμ, .of the. estate. 9f a ?le person·pwimga.b?in? of which anyt? iilt?est or ?nal?? p?pble,in??r tfqs ? is under the co11trol of the Court.of Wards, the?orGeneral, the Ofli.eutl.T.tv.stee or aμ.y receiver .. m?er (including 1ll1Y person, w;?et be his de?Jgnati?; who in, fa? inanages the bqsiness)' apJ>Qinted by or un4!? atJ.y orde; R(.? (:()? the ? interest or pe?alty shaUJ,? levied upon ?d, .t,e recoverable, from such Cour,t of Wards?· Adininis?tor. Gcperal. . Officiai. Trustee, .. ??eiv? or manager in like IIWUlffilitd to thf: same ?t as \t w:01il? be determined and be recoverable from the taxable person as ifhe wei:e:?llCtin.g the??hi?elf. andalhheprovwons of. this "'4:lPr the ?s,f\lla4e therel.lUder shall apply ac?orc:lingly. . . 93. (1)<, ?ve as. o.yt?rwi$C prqvid?d in the Insolvencr::?d . . .B?ptcy Co?}J:tl6,where a person, lia?le. tQ3 PV .? interest W penaJty'under this Act, dies, thf:.p-. ? V ? '.. ' :I' . ,/·., • .•; . . ' . ·._.;_.,_,: ·,.,. : .•. ·: • ( a) if a business cal.lied on ? the person is ?ptimied after his death by,his legal representative Ol'·:fIIY other person, such legal representative or other person. shallbe liable·w payt-., interestdt penalty due from such persoll under this·A? and Liability of partners am firm to pay tax. Llability of guardians. trustees etc. Liability of Court of Wards etc. Special provisions regarding liability to pa, tax, interest or penalty iJ! certain cases.

of2016 of2016 , of2016 (b) . ifthe b?ss !. ?ied on by the ;?rson is discontinued.. ?ther. before. or aftei .l.J.j.s death, his1eg? J'.9)?e? be?? to pay, out of the estate of the deceased, to the extentto which • - - I the ?·li5 ????g the?e, the tax, interest, ?I" p?@ty;dμ.e from such person under this Ac4 .•... ' ' ,, l , . a··.·: whether such tax. lnte?for penalty hasbeen deterrliined ? his death but has remained unpaid or is determined after-.his death. ',:- . (2) 1Save -as oth? pro?(,1¢d in tile Insolvency and B?ptcy q,de,,20? wb.?fe .a ?e person. liable to pay tax, ipterest ? ?ty ?r ?i?? is a Hindu ?vid.ed 4miJy 01' an:asspciatiBn qt ?ns andthe ?pertyoftlleHin?uundivu¥df.aniwsrrw-e?on . of persons is parti.tion? ?ongst tlisXH!ous members or. ?up$,, '?f m?bers. .. ?,n,_ each -? ? group Jlf J):Jembers_,?, JOintly,ai,id ?.-? liable to pay the tax. ?t or penf}ty due froin the,jaxable person · under_Jlj_i?),\ct 'W ? the ti?? oftlie ?on whether such tax. penalty<>! inte.test? l>een iete:rmined before partition buthas reinairled uft'paid orisdefermined after · the partition. (3) ·_s.e .as.,-???- .prQl'i? ? tht: J;??cy .? ,!;'=!?Yi?:r??ii???;t;?d:::?·?n?=· . ?d the firmjs diswfyf!d. ffi?.,?ery persop who was a .• shaDi{MS??£; penalty lias been determined before the dissolution,_ but ?as remained unpaid oris deti!i-mined ·a,ftel: dissolution.r ?. _::rr·· ;- _ _ _ )t5 (4) Save. as otherwise ?,-• 1-J,lnsolvency and Bankruptcy Code, 2Ql(;, wh,« a taxable person liable to i,ay: tax. interest or pelMJlty,μnder this Act.?. (a) is the guarCllilll ·.··??a,1\\1ari{_<>ll _wbose behalf the business is camed'on ?Y theptdiail; or ,f; ,.\,. (b) is a trustee wl}.o carries on thebusiness under a trust for a beneficiary, then, ·if tl'le gti?rdfanshlp or ttust. U terminated,. the -ward or the beneficiary' shall 'be liable· to ·pily'the tax, interest· or penalty due from the taxable person 1.ip te·1tlie time of tluvtenriination ofthe guardianship or trust, whether such ? interest or penalty has been deter,:μ?'4, befor?, the ?tlllin,ation of ?ardiatla.lup-qr trust· but has remained unpaid or is determined thereafter.

7430£2012 94. (l) 'W}lere a 'taxable perso?' ? · a'rum,·or an association of Liability in other a4 persons or a. Hindu unaivided family and such firm, association or family has:discontinued business- ,'.}\-;,j{:j .::· . 'f t,, . . .. _· (a):''?etax;interat,?r,?payable.under this Act . ' by such mm, associatirlrt'br family up to the date ofsuch discontinuance may be determined as if no such disconnnuance ?d?en p]ace; and •',)!fl'l':I' ,,· f •;, ; (b). everypersonwho,atthetimeof suchdiscontinuance, was a partner of-such firm, ot a m?ber ofsuch association or family, shall, notwithstanding such ·?discofitmuance, jointly and severally,'<be: liable ' .. '[o? the ... payment of tax and · .. iriterest determined ana ?? imposed and payable btsucli firm, ?bdation or family, whethei?uclimrandinterest t':::?j? determined or penaltyhtlposedprior to or . Wf such discon?uance and subjectas af9,:-esaid, . 'Ute provjsions of . this Act shall, so far as triay be. apply?· if every such person of partn?r or niember i?re)ilinscl(a taxable,?1Lr ·,. ' (2) W];lere. a cbang? has occurred in the constitution of a firfflftt.' .· usodatioWof?ns, thepartners <ttthe finn orllje?fs of assoaatiBn,'as·itmsted before and as it · ? 1ffler the tec<>nsti?tt,?11, f11a1J, wtth?Jf prtjudice to thi provisions of ?on'?, jointly an4 severally, be li,?le to pay? interest"?r?@ty due from su? firm or ?oda,tion;for any periq? before i?, reconsU??on. l (3) The p?mons·.??J!\>:section (1) sh?, so ra;as 'may be, apply where the taxable person, being a firm pr associati<m ofpersons is dissolved or where the taxalJle person, being a Hindu t1n&vided Family, has effected partition with respect . t6 ·t1ie •. business carried} on by it and ·. accordingly references in . thatsub-section to discohtinuan? shall .. ' be construed . as reference to dissolutio?;i. as the?? may be, to partition. Explanation:-For the purposes of this ?hap?er,- . ( a) · a ?Linuted Liability Partn?ip" formeq anq ,J?gi?re? , under, the provisi<.>ns of ?JJmited Li.ability Pat:tn?p . Act, 2012. shall alsq ?- cQS$d,ered as a firm;, , II::. (b) ?court'"? theDistrid Court. PlighCourt or Supfeme Court. · · .· .. · ···

95. (a) "a?vance ruling\fil? ? decisio.n provided by the .. ,,, · Autliority ot the' Apptllat¢ iutli<>rity to an applicant on matters or on questions ipecified in; ,uo?section (2) of se??on97toU?sectjPP. {?)}<>f ?gn 100,inrelation to the supply of g?Bf,S??-ifib?undertaken or proposed to be undertaken by the applicant; • (b) "Appellate Autho?-means the Appellal!.t\l.rthority for Advance Ruling constituted under sectlo?.99. (c) "?t··?1tμy,person registered,otdesm,us of obtaining regis?tiol). QDdel' this Act; ( d) "application" mtans'an application madetotheAuthority under sub-section, {l) of section 97; __ ? .:t?fi? 1·-?Jr.<: r,,_ :>"-? : .r·.:J-r.-(::.z: -1..,,., (?) '"Alitliority" fu?$ the. Aiith,ority fqr Advance Ruling. constituted under section 96;

Wh? 1?e. estate or any pqrtiqμ, .of the. estate. 9f a ?le person·pwimga.b?in? of which anyt? iilt?est or ?nal?? p?pble,in??r tfqs ? is under the co11trol of the Court.of Wards, the?orGeneral, the Ofli.eutl.T.tv.stee or aμ.y receiver .. 01 m?er (including 1ll1Y person, w;?et be his de?Jgnati?; who in, fa? inanages the bqsiness)' apJ>Qinted by or un4!? atJ.y orde; R(.? (:()? the ? interest or pe?alty shaUJ,? levied upon ?d, .t,e recoverable, from such Cour,t of Wards?· Adininis?tor. Gcperal. . Officiai. Trustee, .. ??eiv? or manager in like IIWUlffilitd to thf: same ?t as \t w:01il? be determined and be recoverable from the taxable person as ifhe wei:e:?llCtin.g the??hi?elf. andalhheprovwons of. this "'4:lPr the ?s,f\lla4e therel.lUder shall apply ac?orc:lingly. . .

(1)<, ?ve as. o.yt?rwi$C prqvid?d in the Insolvencr::?d . . .B?ptcy Co?}J:tl6,where a person, lia?le. tQ3 PV .? interest W penaJty'under this Act, dies, thf:.p-. ? V ? '.. ' :I' . ,/·., • .•; . . ' . ·._.;_.,_,: ·,.,. : .•. ·: • ( a) if a business cal.lied on ? the person is ?ptimied after his death by,his legal representative Ol'·:fIIY other person, such legal representative or other person. shallbe liable·w payt-., interestdt penalty due from such persoll under this·A? and Liability of partners am firm to pay tax. Llability of guardians. trustees etc. Liability of Court of Wards etc. Special provisions regarding liability to pa, tax, interest or penalty iJ! certain cases. 31 of2016 31 of2016 , 31 of2016 103 (b) . ifthe b?ss !. ?ied on by the ;?rson is discontinued.. ?ther. before. or aftei .l.J.j.s death, his1eg? J'.9)?e? be?? to pay, out of the estate of the deceased, to the extentto which • - - I the ?·li5 ????g the?e, the tax, interest, ?I" p?@ty;dμ.e from such person under this Ac4 .•... ' ' ,, l , . a··.·: whether such tax. lnte?for penalty hasbeen deterrliined ? his death but has remained unpaid or is determined after-.his death. ',:- . (2) 1Save -as oth? pro?(,1¢d in tile Insolvency and B?ptcy q,de,,20? wb.?fe .a ?e person. liable to pay tax, ipterest ? ?ty ?r ?i?? is a Hindu ?vid.ed 4miJy 01' an:asspciatiBn qt ?ns andthe ?pertyoftlleHin?uundivu¥df.aniwsrrw-e?on . of persons is parti.tion? ?ongst tlisXH!ous members or. ?up$,, '?f m?bers. .. ?,n,_ each -? ? group Jlf J):Jembers_,?, JOintly,ai,id ?.-? liable to pay the tax. ?t or penf}ty due froin the,jaxable person · under_Jlj_i?),\ct 'W ? the ti?? oftlie ?on whether such tax. penalty<>! inte.test? l>een iete:rmined before partition buthas reinairled uft'paid orisdefermined after · the partition. (3) ·_s.e .as.,-???- .prQl'i? ? tht: J;??cy .? ,!;'=!?Yi?:r??ii???;t;?d:::?·?n?=· . ?d the firmjs diswfyf!d. ffi?.,?ery persop who was a .• shaDi{MS??£; penalty lias been determined before the dissolution,_ but ?as remained unpaid oris deti!i-mined ·a,ftel: dissolution.r ?. _::rr·· ;- _ _ _ )t5 (4) Save. as otherwise ?,-• 1-J,lnsolvency and Bankruptcy Code, 2Ql(;, wh,« a taxable person liable to i,ay: tax. interest or pelMJlty,μnder this Act.?. (a) is the guarCllilll ·.··??a,1\\1ari{_<>ll _wbose behalf the business is camed'on ?Y theptdiail; or ,f; ,.\,. (b) is a trustee wl}.o carries on thebusiness under a trust for a beneficiary, then, ·if tl'le gti?rdfanshlp or ttust. U terminated,. the -ward or the beneficiary' shall 'be liable· to ·pily'the tax, interest· or penalty due from the taxable person 1.ip te·1tlie time of tluvtenriination ofthe guardianship or trust, whether such ? interest or penalty has been deter,:μ?'4, befor?, the ?tlllin,ation of ?ardiatla.lup-qr trust· but has remained unpaid or is determined thereafter. 7430£2012 104

(l) 'W}lere a 'taxable perso?' ? · a'rum,·or an association of Liability in other a4 persons or a. Hindu unaivided family and such firm, association or family has:discontinued business- ,'.}\-;,j{:j .::· . 'f t,, . . .. _· (a):''?etax;interat,?r,?payable.under this Act . ' by such mm, associatirlrt'br family up to the date ofsuch discontinuance may be determined as if no such disconnnuance ?d?en p]ace; and •',)!fl'l':I' ,,· f •;, ; (b). everypersonwho,atthetimeof suchdiscontinuance, was a partner of-such firm, ot a m?ber ofsuch association or family, shall, notwithstanding such ·?discofitmuance, jointly and severally,'<be: liable ' .. '[o? the ... payment of tax and · .. iriterest determined ana ?? imposed and payable btsucli firm, ?bdation or family, whethei?uclimrandinterest t':::?j? determined or penaltyhtlposedprior to or . Wf such discon?uance and subjectas af9,:-esaid, . 'Ute provjsions of . this Act shall, so far as triay be. apply?· if every such person of partn?r or niember i?re)ilinscl(a taxable,?1Lr ·,. ' (2) W];lere. a cbang? has occurred in the constitution of a firfflftt.' .· usodatioWof?ns, thepartners <ttthe finn orllje?fs of assoaatiBn,'as·itmsted before and as it · ? 1ffler the tec<>nsti?tt,?11, f11a1J, wtth?Jf prtjudice to thi provisions of ?on'?, jointly an4 severally, be li,?le to pay? interest"?r?@ty due from su? firm or ?oda,tion;for any periq? before i?, reconsU??on. l (3) The p?mons·.??J!\>:section (1) sh?, so ra;as 'may be, apply where the taxable person, being a firm pr associati<m ofpersons is dissolved or where the taxalJle person, being a Hindu t1n&vided Family, has effected partition with respect . t6 ·t1ie •. business carried} on by it and ·. accordingly references in . thatsub-section to discohtinuan? shall .. ' be construed . as reference to dissolutio?;i. as the?? may be, to partition. Explanation:-For the purposes of this ?hap?er,- . ( a) · a ?Linuted Liability Partn?ip" formeq anq ,J?gi?re? , under, the provisi<.>ns of ?JJmited Li.ability Pat:tn?p . Act,

105 (a) "a?vance ruling\fil? ? decisio.n provided by the .. ,,, · Autliority ot the' Apptllat¢ iutli<>rity to an applicant on matters or on questions ipecified in; ,uo?section (2) of se??on97toU?sectjPP. {?)}<>f ?gn 100,inrelation to the supply of g?Bf,S??-ifib?undertaken or proposed to be undertaken by the applicant; • 4 (b) "Appellate Autho?-means the Appellal!.t\l.rthority for Advance Ruling constituted under sectlo?.99. (c) "?t··?1tμy,person registered,otdesm,us of obtaining regis?tiol). QDdel' this Act; ( d) "application" mtans'an application madetotheAuthority under sub-section, {l) of section 97; __ ? .:t?fi? 1·-?Jr.<: r,,_ :>"-? : .r·.:J-r.-(::.z: -1..,,., (?) '"Alitliority" fu?$ the. Aiith,ority fqr Advance Ruling. constituted under section 96; Definitions.

(l) The,:Government shall, ,by ,notification, constitute an Constitution of Autli Authority to be Jui.own as the Manipur Authority for for Advance Ruling. Advance Ruling: I>rovided ?.the Qpvenunent piay, on-the recommendation of the Council, noμfy ani,??ority.lqcated in another .Sμte to act as the .I\Jlthority for ?s1' •. ,; {2) The Authority snallctiri?ist. of- . . . .. . . . "' (i) one member from am?ngst dieofficers or' central ?and , (ii) one memheLf;rom amongst the officer&of State wr, ·i,; L, - . to be appointed by the Central Government and the. State Government respectively. ?:; (3) The qualifications, -the DJethpd;of appointment of the members and the terms and conditions of their services shall he such as may be prescribed. 97. · (1) An applkanNiesirous of ?btainfug ari a?vance ruling Application foradvance under this CHaptet ma·yr iriili''an applicatiQn in such tilling. form and manner and accompaniedby such fee as may be1prescribed, stating.the4Ueslionon whichthe advance nwng is soughttir,

(2) The question on wHith'1the advahce ruling is sought underthis Act. slillltWfh'?bf, - (a) classification of any goods or services or both; (b) ·, -applicab?ia notifi.ution ·Issued under the provisions ofthis Act; ''.' - - ::':JP'·'J? {\'- .. : ? . ,-?"_:[?-: ;,:- . '• ( c) determination of??- ?4 value.9fsupRlr, gf goods Of services or??; · " · · · f>i(d) admissibility' of input tax ?t of tax paid or deeined1fo Have been paid;" . ':.' . . .. •.. . ,J . . ; r --?-· ( e) determination of the liability to pay tax on any ·; go9ds'or serricea or both; (f) ?heiti? applicant is required to be registered; (g) ·· whether any particulaf.thingdone·by the applicant with respect to any goods or services' or both amdunts to or results in a supply of goods or services or both, within the meaning of that term. ; ;!_ .. :) 98. (1) On receipt of an application.·· the Authority shall cause a copy thereof to be forwarded to the CCP,!Cepted ofij.cer and, if necessary, call ttp<,,n, him to? 'the .relevant records: '· ,,i' Provided. that wh.-.anyrecords havebeen,caJled.for by the Authority in. any case, sudi records shall,? ss.sccn as. p<>ssμ,Ie, be returned to thesaid concerned officer. (2) The Autb:ority·may, after examining theiapplication and tht?record&called for and after hearing the'applicant or' his authorised representative ana the· concerned officer or his authorised representatiye, ;by order, either admit or reject the application: . . •: )L Providedthat .the Authority shall not admitthe appli?tion where the question raised in the application is' already pending or decided in any proceedings in the case of an,applicant under any of the prd+isions of this Act: " ,. Provided further that no application shall be. rejected un4?r this sub-section unless an opportunity of hearing has been given:to the applicant» L · · · . Provided alsQ that.where,? ,appli?o.n ? ?ected, the · ,,:11eason, for such reje,¢on ?-? specified in.the order, l (3) '",A copy ofevery order '9,adt.μrider sub?sectio(l (2) shall be sentto the applicant and to the.ronceffledofficer. Procedure on receipt '1 application.

( 4) Where an application is·adni'itted undersub-section (2), the A¥thoritysliall; aftei- mmtningsuch further?erial as may be placed ?fore· Why the applicant or obtalned by the Authdrfty and after"providing an opportunity1 · of being heard to the applicant or . his authorised repres?I!tative as well as . to. the ionq!rned_ officer or his author?a 'representative, pronounce its acfv?nce ruling on the question specified in the application.· -'.C .:? . C. ' (5) Wb,eiethe m?mbers ·of the Aμthorlt,y differ on any <fy?tion on wpich. theadvance nμfug is sought. they snail state.? poptt or points on wJuch they differ and make a reference to the Appellate Authority for hearing anp decisj.on on such question. · (6) 'lhe Authority'-shall.j,rono,urice its advance ruling in writing within ninety days 'from the date of receipt of application. · (7) A -?PY.·. of the advance ruling pronounced by the ?erity duly signed by the·? and certified in such manner as niay be. prescribed s}wl be sent to the . applic:ant, the concerned officer·· and the judsdictional officeraftersuch pronouncement. ";: ? f ? -? 99. The Government shall, bynotificatiOil, constitute an Authority to be know.p. as Manipur Appellate J\uthoritr for Advance , . R.Wing fo,r GQods and Services Tax for hearing appeals against the a?, Juling _pronounq!p by the Mvance Ruling Authority consistmg of- · · ··· · (i) ?e r?¥ -??.rn!¥<>nei' . of Central. tax as n · ?· t&i'by the Board; and . . · · :, .. ,'8P ·· .. ·,: (ii) "'tlieeommtssioHerhfstatetiJt ._, ,.,1 < fr .,, Pi?vid??f'that the G?tlml?t?Y, 1.>nthe recommendations of the Council, notify any Appellate· Authority' located in another State. or Uni<>? ltrJ#ory to &;ct as the Appellate Authority for the State. . . . ·.· ·. · · . 11·· . • · ·' 1:f·, Constitution of Appellate Authority for

· (1) An applkanNiesirous of ?btainfug ari a?vance ruling Application foradvance under this CHaptet ma·yr iriili''an applicatiQn in such tilling. form and manner and accompaniedby such fee as may be1prescribed, stating.the4Ueslionon whichthe advance nwng is soughttir, 106 (2) The question on wHith'1the advahce ruling is sought underthis Act. slillltWfh'?bf, - (a) classification of any goods or services or both; (b) ·, -applicab?ia notifi.ution ·Issued under the provisions ofthis Act; ''.' - - ::':JP'·'J? {\'- .. : ? . ,-?"_:[?-: ;,:- . '• ( c) determination of??- ?4 value.9fsupRlr, gf goods Of services or??; · " · · · f>i(d) admissibility' of input tax ?t of tax paid or deeined1fo Have been paid;" . ':.' . . .. •.. . ,J . . ; r --?-· ( e) determination of the liability to pay tax on any ·; go9ds'or serricea or both; (f) ?heiti? applicant is required to be registered; (g) ·· whether any particulaf.thingdone·by the applicant with respect to any goods or services' or both amdunts to or results in a supply of goods or services or both, within the meaning of that term. ; ;!_ .. :)

(1) On receipt of an application.·· the Authority shall cause a copy thereof to be forwarded to the CCP,!Cepted ofij.cer and, if necessary, call ttp<,,n, him to? 'the .relevant records: '· ,,i' Provided. that wh.-.anyrecords havebeen,caJled.for by the Authority in. any case, sudi records shall,? ss.sccn as. p<>ssμ,Ie, be returned to thesaid concerned officer. (2) The Autb:ority·may, after examining theiapplication and tht?record&called for and after hearing the'applicant or' his authorised representative ana the· concerned officer or his authorised representatiye, ;by order, either admit or reject the application: . . •: )L Providedthat .the Authority shall not admitthe appli?tion where the question raised in the application is' already pending or decided in any proceedings in the case of an,applicant under any of the prd+isions of this Act: " ,. Provided further that no application shall be. rejected un4?r this sub-section unless an opportunity of hearing has been given:to the applicant» L · · · . Provided alsQ that.where,? ,appli?o.n ? ?ected, the · ,,:11eason, for such reje,¢on ?-? specified in.the order, l (3) '",A copy ofevery order '9,adt.μrider sub?sectio(l (2) shall be sentto the applicant and to the.ronceffledofficer. Procedure on receipt '1 application. 107 ( 4) Where an application is·adni'itted undersub-section (2), the A¥thoritysliall; aftei- mmtningsuch further?erial as may be placed ?fore· Why the applicant or obtalned by the Authdrfty and after"providing an opportunity1 · of being heard to the applicant or . his authorised repres?I!tative as well as . to. the ionq!rned_ officer or his author?a 'representative, pronounce its acfv?nce ruling on the question specified in the application.· -'.C .:? .

The Government shall, bynotificatiOil, constitute an Authority to be know.p. as Manipur Appellate J\uthoritr for Advance , . R.Wing fo,r GQods and Services Tax for hearing appeals against the a?, Juling _pronounq!p by the Mvance Ruling Authority consistmg of- · · ··· · (i) ?e r?¥ -??.rn!¥<>nei' . of Central. tax as n · ?· t&i'by the Board; and . . · · :, .. ,'8P ·· .. ·,: (ii) "'tlieeommtssioHerhfstatetiJt ._, ,.,1 < fr .,, Pi?vid??f'that the G?tlml?t?Y, 1.>nthe recommendations of the Council, notify any Appellate· Authority' located in another State. or Uni<>? ltrJ#ory to &;ct as the Appellate Authority for the State. . . . ·.· ·. · · . 11·· . • · ·' 1:f·, Constitution of Appellate Authority for Advance Ruling.

( 1) -, 1iii'lco11?e%ed ?fficer, the jurisdictional ?tJker of an Appeal to the AppcDate applicant aggrievedby any advance rtiling'p'ronounced" · ·-Authority. Qndt;r sub-?ction (4) of sectio1198, may appeal to the Appr.illate A':1?Q.rtty. · . :i;, · , . . : . . ? .... ;;; (2) E\Tery appeal under this section shall befiled within a Tpei:?od,p(? ?? f'l;9.ni the d?te o.J,1 which the ruling squp\ tp ?i\P?aleg1 ?t.iS; cqnun?cated to the concerned officer, tqc: .,j\J,ri$;ru?!i,onal .. ;Officer and the applicant: . · '"-' · ' " ·

Provided that the Appell? Au?ity·may,jf it.is satisfied that the appellant.was prevented by asp.fficient ? from P!esenting the appeal with41 thf: said period of thirty da,s, allow it to.\:>e presented within.A furthef period not exceeding thirty <la?t'. . ' (3) Every appeal ?? this sectirin ·shall be i11 ,!ucli form, accompanied by_such _fee and verified i.μ :s\lch manner as may be prescribed. · ·,;. 101. (1) 1Jie App?te Authority may, after, giving ??-parties to Orders of Appellalel the appeal OJ." reference an opportunity cfbtjng heard, Authority. p? such Qrder as it think fit,. co? or,,m?g . the ruling appealed against <>r ref th'? to ... · · \j2) The order referred to in sub?secti?n (If shall b?; passed \ withina period ofninety'days from the date 9{'1ing of the appeal under section or a reference.\lllder sub- section (5) of section 98. (3) \.yhere the members of the Appellate Authority differ on arlr point or points referred to in appeal otreference, it shall be deemed tbaOio advance ruling can be issued in respect of thetquestion under the appeal or refeience. .Applicability of? ruling. Rectification of? . ruling. ! ? ·; "· __ \,. -·- . . . \ ·; __ ': \_"·:-c:· '..,-?- --_. ;,;-??,-;;· -: ;. __ . ;:, Provided tfiatno rectification whichnas the effect of enhancing .. the tax liability orredudng the amount of admissible input tax credit shall be made ??? the app??t.or the appellap.1?as .b??:givei,. an opportunity ofl:iein??eard.. ..·_ · · · · 103. (1) ?::-?p=U=??i::: only- · ... · \ (a) on the applicant? '?d ?ugiit'it'br?ct of . ? mattei1?toJri sii.1,?se'ction{2) of ?on <fl 97'fot a?vanet roling;1 ·" ·fW (4) Acopyoftheadvancerulingpronount:4:<ibytheAppellate AuthQrity duly signed by the Membert, and certified in such manner·u may be prescribed slwl l?e sent? the app?cax,it, the concerned officer, the ;?Ucti?nal officer and to? Authority-after such pronoun? 102. '!he Authority or the Appellaw .t\p.thoritymay amend any order passed by it undet,?OA.?'or .section lOh,sP, as to rectify any error apparent on the face of the reconl it such error is noticed by the Autho,rity or the APB?te ?rity c.:,11its own accord, or is brought to its notice by the concerned officer; the jurisdictional officer o,:. the appUcant within a peiiod of six ?onthsfro111the?1?t?f ?r,d?: ·· ... ,,. H· ,,

5ofl908 2ofl974 45ofl860 (b) on the concerned offic&.orthe?jurisdictional officer in respect of the appliomt. · (2) The. advance ruling referred to itl sub-section (1) shall be bindfuguitl?the law. facts of firtumstances supporting the origttt;il advance rolinglmtch?. -,?H. ·,cc.,. 104. {I) WheretheAuthorityorthe.Appellate.Authoiity finds that Advance ruling to be void advance ruiintJ prpnou.nced hysit under sub-section (4) in certain circumstances. of section 98ol: .lfflder suo-?on (l) ebectioa lOlhas been obtained by the applicant or the appellant by fraud or ?uppression of m?alfacts or?-??on of facts, it ?y. by order. c}epare such rulingtqJ>e:r,oid ab- initio .;tnd th.ereup<>Jl. all tli.e ,,PfOvi$ions of this Aft QI' the rules made there .uncie? sqaμ.. $ply,tp the ?cant as if s?ch?ce ruling ha<t?r been made; . . ?t,"ovideg that no order shall ?e pa$Sep uq?r ? sμi;?on . unless an oppo?ty ofb?J ?eard has been given to the am>licant. ' I Expla?on:- The period begiririmg With rfie .date of s? advance ruling and ending with the date of-order under ?sub-?onmall be excluded .while· computing the period'ijJeafieWin 'sul,.:sections (2) and {10):of section orsub,.section (2)und (lO)ofsection 74. (2) A copy of the order made under sub-section (1) shall be sent tQ the ,i>P'Ucant, ?e concerned officer and the jurlsqicti9nal offi??r 105. (i) \) The Authority or the Appellate .Auth?rity shall; for the Powersof Authority and puij,ose of exercising its powers reg?ding -. · Appellate Authority. ? .? .. ,':i.;._,.·,., . . (a) ?pry and inspectiont . . (b) · enfofcirig th? attendan? examining him on oath; ' ( c) issuing ?oibnli$$ions.sa.nd cc:tmp,IUing prodiicti°'1 of books of .accoμnt an?l: Qtber , ?r?. have · all th?.powus.of,a,civil ?W!.:?er the??itlCivil Protedllf?. lc?- (2) The Authority or 'tlie Appellate Authority'?? be deemed to be a civil court for the purposes of section 195, but notfoi the purposes of Chapter XXVl.ofthe Code of. Criminal · Procedure, , 1973, and ·?·· proceedings before the Authority or the Appellate Authority shall be deemed to be a judicial proceedings within the nit!aning •. of sections and 228, and for the putj,me'of section of the Indian Penal Code. ,:-: ,:L:: _. -- _ ;(, ... , R1 -?_:} lfJ-1 ,•,_-??:: · ·:_'f, ,._ '"t: < -<-t,-; - • 106. Tuei?VtWg?.o,?Jhe.,A,pp?t?Authqr!n,,sqall •. ??je? to the Procedand Apurepellaofte?? provisions ofthis ehapter, have J?OWer t9-.regula,te Its OWll n••-... ,. procedure. ,,, .· ,d.," · • · · · , •

CHAPT:sR"".?11 APPEALS AND REVISION :( '".' 107. (1) Any pmon?eved by any decision e>rorder passed under this Aq:11,2:rJbe. Central Goods an4 Services Tax Act by an adjudicating authority may appeal to such Appellate?rity as may he presmhed within three months from the dateron whidr the' said decision or order is communicated to· such person: (2) The Commissioner may; his own nfotion, ·or upon request'from the Commissioner of central.tax, call for and examine the record of any proceedmg ,in which =d==? :::;:le ?n?c!:Z ?j?J:?: Tax Act. forthe purpose of satisfying himself as to the legality or. propriety of the said. decisi()n or order and may, by 'drder, · direct any officer subordinate , to him to apply to ? Appellate. Authority within six months ?the? of communication of-the said decision or order .. for the determination ofsuch points arising out of the $aid decision or order.as may be specified by the Commissioner in his order. (3) Where, in pursuance of an or? under, .sub-section (2), the authorised officermakes an application to the AppellateAu.fh()rity, sucli• .. application sball .,!>e · dealt with by the.?? 4uth9rity as_ if it.were ? appeal made against the decision or order ofthe adjudicating authority andsuch authorised oflicer·were an appellant and the provisions of this Act relating to' appeals shall apply to such application. ' ( 4) 'lhe Appellater: l'\uthorityMay; if he is satisfied that the appellant was·· prevenred by''sufficient cause from · pi'tsentmg the appeal• within· ·the aforesaid· period of three months or six months, othe casemafbe, allow it ,?],le presented within a further period of one month. (5) Every appeal under this secti.Qn shall be ,inauch form anc · sh.all be verified in such manner as may he-prescribed ( 6) No appeal shall be filed under sub-section (1), unless th, appellut has paid- (a) in full, such part of the a,mount ,<>ft?, interest fin fee and'j,enalty arising from th??p?ed'order;: is admitted by him; arid · " · · ' Appeals to Anndlll Authority. - -r,..-.

(p) asum equal to t.cm.A? cent. of the remaining amount of tax ..,.: flispute arising from thesaid order, i9-.relatio,.to whichthe ?ppealhas been filed. (7) Wherethe appellant has 'paid .the amount under sub- section ( 6),. the recovery proceedings for thebalance amount shall be ?¢..tq,h?\stt.yed. (8) The Appella? A\ltlltttiiy.??. give an opportunity to the appellant of being heard (9) The Appellate Authority tnar, if sufficient cause is shown at any·stage ofheariWg.of'an?.granttill)e to the parties or any of them and adjourn the hearing ofthe appeal for reasons to be recorded in writing: PttMded that no, such adjournment shall be granted more than three times to a party dming,heari.ng of the appeal. · . (10) The Appellate Autbo?,JUY, at.the time of hearing of an appeal. allow all-appellant. tc> add any ground of appeal not specified .ill· the grounds Qf app? if it is satisfied , .· that the omissi.o? .of that gro,??-4 Jrom the grounds of , appeal was not willfμl or ?nal>le. . .. ,,,,, (11) The Appellate Autho?shall, lifter lll? .? farther mquiry as may be. ne? •• pass.such order, as it thinks · just and proper •.. ?onfuln?g, modifying or annulling the decision or order a?ea against butshall not referthe case bade to .the adjudicating authority that passed the said decisi<>rt or order: · Provided that an?rder enhancing any fee or penalty or fine in lieu of ?nfiscat,ion or 5pnfiscmng? of greater value or reducing the amount _of refund or input tax credit shall not be passed unless the appelll:Qt hasbeep pen a reasonable opportunity of showing. cause againstthe proposed order: Provided further that. where.? Appellate Authority is of the opinion that any tax has no? b?en paid or short-paid or erroneously refunded, or where input· tax credit hasbeen wrongly availed. or utilised. no order requiring the appellant to pay such tax or input . . . . ' . . . tax creditshall be passed unlessthe appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73or sedia.ri74.

{12) The order of tht'f1PPellatc Authority disposing of the appeal shallbe lii"itti? and shalh?ate the points for determination, the dedsfbn thereon and the reasons for ·such decisioh. {13) ·-·t-_?- . ·_ r :J';s·,1·t\.' ; :-· -_ .. -__ :; The Appellate Authority 'sliall where it is possible to do so, hear and decid? ev?Q'?Pl'? w_!thin a period of one year from the dare on wtifc:lrit IS filed: · .•.. , ..... ·· Provided that W'here the ?\ijlllC?.o,f order is stayed by an order ofa court pr '!'rib? :tJi,= perfud:of,sugi stay ? be exc1uaed in C91l1Putjng th? p#iod of one year. < (14) On disposal ofthe appeal, the Appellate Authority shall communicate·the. order passedby it to the .appellant, respondent and:tothe adjudicating authority. ?15) A copy of the order passedby the Appellate Authority ·· shall alsobe sent to the Commissioner or the authority designated by' him iri this beHalf andthe jurisdictional Commissioner of central·ta:x ·or an authority designated by him in thisbehalf. . . 1os.· cf) ·-:, . " Eyecy order passed, 1J!i4er this section shall,. subject to the provisi?. of ?011 lμB or section or section 1?7 or section 118be? .. and bindingo,11the parties. Subject to the p?iri? ?f?mJJ2J and any rules made thereunder, the Provisional Authority may on his . own motion, or ??ff inf<>rmation received by him or on requestJioin,.??fommis5ior,i?r of ?tral tax. cal,\?u for and exain,.).Qe tli?J:?rd of any procee<lirigs..l)Ild (he -. ; ·· considers that .?y .q?qmon .oJ' Q{(\?i: ,p? w,,der this Act or under the Central Goo4s an,(?,ervic? Tax.Act J.>y any officersubordinate to him. is erroneous in so far as it iJ prejudicial to the int?i:?st <>fr?enu? imd ismegal or Impreper.or has not tak#J?,.Jn.to account. certain material ?, whether available at the· til:ne of. ?μan?e of th.e sai.d order or not Of in a)JlS?,quence of an ob??tion by, the, CompuyU? all<\ ,.f\\lrutpr, Gen? <>(Jpd? .. he may, .. if nc;cessai:y, stay ?e 9peration of such deQsion or orderfor ,sudl period as,bedeemJ,fit·and after giving the person cbncerned an opportunity of being heard ahd after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling thesaid decision, or order. Powers of RevisiOI Authority. (2) Toe Revisional Authority shall not exercise any power under sub-section (1), if-

(a), .?e.order. has be?n subif..Cf,, ? ,?an .. "pea,!.under ,section or section! tit"sectton or section ·118; or · ··· '!·' ·· (\?) the pqiod. ?tjfi? un9? s?b-?!,i<>? ,(2) of ?F?<?n. hafiiotyetexp?d or mote ,ffi,ii t;tee .·· years have expirep aftef1lJ:? P?ll!S of th?.,Qecision or order sought to ?:?d? 9r , .. (c) the order has alreadytbeen: ??'fof?on under this section at an earlier stage; of·' ,:, · ' ' (cl),' the order has?? inextr?of the powers ,> undersub-section (11: ... ./ . . ' .;; ?-\l'f ?;'.';:·· .... . -? Provided• that '.flie Revwonal · Authorify4nay ?nan· order under sub-section. (1) on any point which has nof'l,een flOsed and decided in an appdl· referred to ia:·? .. (a) ofsab-section (2), before the expiry ofa perit>G'ofone }'ftl' ftotn the datehfthe order insuchappealerbeforetheexpiry$J)dti8d?threeylmsrefe.tred to. in clause Cb) of that sub-section, wlii?et is laten,, ·'"' ,;., (3)t,, Bvery ·Older·passed•in revi$ion·:under.sulJ..sedion · i(l) ,: shall, su1Ject to the provisions ofsedfon· t,J.,3-c,r ?on or sectio11·118"be·final and bitldmgonthepartie,s. f ,!qt :'} .\(>J,: 1\.;;".? '• · (4)··: Iftke?dec:;isionor.order mvolffl.1anissue on which ,. ·, · · the Appalate 'liibunal or the High Court has given its decision in'som.e o?r proceedings andan appeal to the High Court or the Supreme Court against such decision · of tbe,•AJ>pellate Tribunal or the High Court is pending. · the ·penod,sttent between the date of the decision of the Appellate ''Iribunal. and. the date of lhe: decision. of the HigWCourt or the date of thededst<W.tofthe High Court andthe date of the decision"oftheSupreme Courtshall be • 11,; . txcluded in com.pt)ting the periocloflirnttaoon referred to ·in clause (b) of suh--secti<>n (!) whe,:e;? for revision have been initiat-1 by wa? 0,f ? ofa,notice under this section. · " ) ·1 · (5) Where the issuatlce of an,order :under,??on (1) is stayed by,the order. of a ? <n1;?ate 1iibunal, ,i. the period,of such stay shall????.,in computing the period of limita'tion reforted to in :daU# (b) ofsub- sectio?(?). ., .,. '??: (6) For the.purpo$CS of.this section, the ?:rDl,-;- (i) "record· shall include all rec'ords 'relating to any lcp? dlider this .A£t.>Miblble at theJime of :·,,.,,aamtnation·bythe R? A\Jthority;

Procedure before Appellate 'Iiibunal. President and Qf Appellate Tribunal., their qualification, · appointment. con · df service. etc. .1h!.1)';,?i?.''.'?4,??op,??s??1i' fuqμae intimation ?? ?y any officer lower in ran1c than the

(1) 1Jie App?te Authority may, after, giving ??-parties to Orders of Appellalel the appeal OJ." reference an opportunity cfbtjng heard, Authority. p? such Qrder as it think fit,. co? or,,m?g . the ruling appealed against <>r ref th'? to ... · · \j2) The order referred to in sub?secti?n (If shall b?; passed \ withina period ofninety'days from the date 9{'1ing of the appeal under section 100 or a reference.\lllder sub- section (5) of section

'!he Authority or the Appellaw .t\p.thoritymay amend any order passed by it undet,?OA.?'or .section lOh,sP, as to rectify any error apparent on the face of the reconl it such error is noticed by the Autho,rity or the APB?te ?rity c.:,11its own accord, or is brought to its notice by the concerned officer; the jurisdictional officer o,:. the appUcant within a peiiod of six ?onthsfro111the?1?t?f ?r,d?: ·· ... ,,. H· ,, 5ofl908 2ofl974 45ofl860 109 (b) on the concerned offic&.orthe?jurisdictional officer in respect of the appliomt. · (2) The. advance ruling referred to itl sub-section (1) shall be bindfuguitl?the law. facts of firtumstances supporting the origttt;il advance rolinglmtch?. -,?H. ·,cc.,.

(1) ?::-?p=U=??i::: only- · ... · \ (a) on the applicant? '?d ?ugiit'it'br?ct of . ? mattei1?toJri sii.1,?se'ction{2) of ?on <fl 97'fot a?vanet roling;1 ·" ·fW (4) Acopyoftheadvancerulingpronount:4:<ibytheAppellate AuthQrity duly signed by the Membert, and certified in such manner·u may be prescribed slwl l?e sent? the app?cax,it, the concerned officer, the ;?Ucti?nal officer and to? Authority-after such pronoun?

{I) WheretheAuthorityorthe.Appellate.Authoiity finds that Advance ruling to be void advance ruiintJ prpnou.nced hysit under sub-section (4) in certain circumstances. of section 98ol: .lfflder suo-?on (l) ebectioa lOlhas been obtained by the applicant or the appellant by fraud or ?uppression of m?alfacts or?-??on of facts, it ?y. by order. c}epare such rulingtqJ>e:r,oid ab- initio .;tnd th.ereup<>Jl. all tli.e ,,PfOvi$ions of this Aft QI' the rules made there .uncie? sqaμ.. $ply,tp the ?cant as if s?ch?ce ruling ha<t?r been made; . . ?t,"ovideg that no order shall ?e pa$Sep uq?r ? sμi;?on . unless an oppo?ty ofb?J ?eard has been given to the am>licant. ' I Expla?on:- The period begiririmg With rfie .date of s? advance ruling and ending with the date of-order under ?sub-?onmall be excluded .while· computing the period'ijJeafieWin 'sul,.:sections (2) and {10):of section 73 orsub,.section (2)und (lO)ofsection

(i) \) The Authority or the Appellate .Auth?rity shall; for the Powersof Authority and puij,ose of exercising its powers reg?ding -. · Appellate Authority. ? .? .. ,':i.;._,.·,., . . (a) ?pry and inspectiont . . (b) · enfofcirig th? attendan? examining him on oath; ' ( c) issuing ?oibnli$$ions.sa.nd cc:tmp,IUing prodiicti°'1 of books of .accoμnt an?l: Qtber , ?r?. have · all th?.powus.of,a,civil ?W!.:?er the??itlCivil Protedllf?. lc?- (2) The Authority or 'tlie Appellate Authority'?? be deemed to be a civil court for the purposes of section 195, but notfoi the purposes of Chapter XXVl.ofthe Code of. Criminal · Procedure, , 1973, and ·?·· proceedings before the Authority or the Appellate Authority shall be deemed to be a judicial proceedings within the nit!aning •. of sections 193 and 228, and for the putj,me'of section 196 of the Indian Penal Code. ,:-: ,:L:: _. -- _ ;(, ... , R1 -?_:} lfJ-1 ,•,_-??:: · ·:_'f, ,._ '"t: < -<-t,-; - •

Tuei?VtWg?.o,?Jhe.,A,pp?t?Authqr!n,,sqall •. ??je? to the Procedand Apurepellaofte?? provisions ofthis ehapter, have J?OWer t9-.regula,te Its OWll n••-... ,. procedure. ,,, .· ,d.," · • · · · , • 110 CHAPT:sR"".?11 APPEALS AND REVISION :( '".'

(1) Any pmon?eved by any decision e>rorder passed under this Aq:11,2:rJbe. Central Goods an4 Services Tax Act by an adjudicating authority may appeal to such Appellate?rity as may he presmhed within three months from the dateron whidr the' said decision or order is communicated to· such person: (2) The Commissioner may; 011 his own nfotion, ·or upon request'from the Commissioner of central.tax, call for and examine the record of any proceedmg ,in which =d==? :::;:le ?n?c!:Z ?j?J:?: Tax Act. forthe purpose of satisfying himself as to the legality or. propriety of the said. decisi()n or order and may, by 'drder, · direct any officer subordinate , to him to apply to ? Appellate. Authority within six months ?the? of communication of-the said decision or order .. for the determination ofsuch points arising out of the $aid decision or order.as may be specified by the Commissioner in his order. (3) Where, in pursuance of an or? under, .sub-section (2), the authorised officermakes an application to the AppellateAu.fh()rity, sucli• .. application sball .,!>e · dealt with by the.?? 4uth9rity as_ if it.were ? appeal made against the decision or order ofthe adjudicating authority andsuch authorised oflicer·were an appellant and the provisions of this Act relating to' appeals shall apply to such application. ' ( 4) 'lhe Appellater: l'\uthorityMay; if he is satisfied that the appellant was·· prevenred by''sufficient cause from · pi'tsentmg the appeal• within· ·the aforesaid· period of three months or six months, othe casemafbe, allow it ,?],le presented within a further period of one month. (5) Every appeal under this secti.Qn shall be ,inauch form anc · sh.all be verified in such manner as may he-prescribed ( 6) No appeal shall be filed under sub-section (1), unless th, appellut has paid- (a) in full, such part of the a,mount ,<>ft?, interest fin fee and'j,enalty arising from th??p?ed'order;: is admitted by him; arid · " · · ' Appeals to Anndlll Authority. - -r,..-. 111 (p) asum equal to t.cm.A? cent. of the remaining amount of tax ..,.: flispute arising from thesaid order, i9-.relatio,.to whichthe ?ppealhas been filed. (7) Wherethe appellant has 'paid .the amount under sub- section ( 6),. the recovery proceedings for thebalance amount shall be ?¢..tq,h?\stt.yed. (8) The Appella? A\ltlltttiiy.??. give an opportunity to the appellant of being heard (9) The Appellate Authority tnar, if sufficient cause is shown at any·stage ofheariWg.of'an?.granttill)e to the parties or any of them and adjourn the hearing ofthe appeal for reasons to be recorded in writing: PttMded that no, such adjournment shall be granted more than three times to a party dming,heari.ng of the appeal. · . (10) The Appellate Autbo?,JUY, at.the time of hearing of an appeal. allow all-appellant. tc> add any ground of appeal not specified .ill· the grounds Qf app? if it is satisfied 0 , .· that the omissi.o? .of that gro,??-4 Jrom the grounds of , appeal was not willfμl or ?nal>le. . .. ,,,,, (11) The Appellate Autho?shall, lifter lll? .? farther mquiry as may be. ne? •• pass.such order, as it thinks · just and proper •.. ?onfuln?g, modifying or annulling the decision or order a?ea against butshall not referthe case bade to .the adjudicating authority that passed the said decisi<>rt or order: · Provided that an?rder enhancing any fee or penalty or fine in lieu of ?nfiscat,ion or 5pnfiscmng? of greater value or reducing the amount _of refund or input tax credit shall not be passed unless the appelll:Qt hasbeep pen a reasonable opportunity of showing. cause againstthe proposed order: Provided further that. where.? Appellate Authority is of the opinion that any tax has no? b?en paid or short-paid or erroneously refunded, or where input· tax credit hasbeen wrongly availed. or utilised. no order requiring the appellant to pay such tax or input . . . . ' . . . tax creditshall be passed unlessthe appellant is given notice to show cause against the proposed order and the order is passed within the time limit specified under section 73or sedia.ri74. 112 {12) The order of tht'f1PPellatc Authority disposing of the appeal shallbe lii"itti? and shalh?ate the points for determination, the dedsfbn thereon and the reasons for ·such decisioh. {13) ·-·t-_?- . ·_ r :J';s·,1·t\.' ; :-· -_ .. -__ :; The Appellate Authority 'sliall where it is possible to do so, hear and decid? ev?Q'?Pl'? w_!thin a period of one year from the dare on wtifc:lrit IS filed: · .•.. , ..... ·· Provided that W'here the ?\ijlllC?.o,f order is stayed by an order ofa court pr '!'rib? :tJi,= perfud:of,sugi stay ? be exc1uaed in C91l1Putjng th? p#iod of one year. < (14) On disposal ofthe appeal, the Appellate Authority shall communicate·the. order passedby it to the .appellant, respondent and:tothe adjudicating authority. ?15) A copy of the order passedby the Appellate Authority ·· shall alsobe sent to the Commissioner or the authority designated by' him iri this beHalf andthe jurisdictional Commissioner of central·ta:x ·or an authority designated by him in thisbehalf. . . 1os.· cf) ·-:, . " Eyecy order passed, 1J!i4er this section shall,. subject to the provisi?. of ?011 lμB or section 113 or section 1?7 or section 118be? .. and bindingo,11the parties. Subject to the p?iri? ?f?mJJ2J and any rules made thereunder, the Provisional Authority may on his . own motion, or ??ff inf<>rmation received by him or on requestJioin,.??fommis5ior,i?r of ?tral tax. cal,\?u for and exain,.).Qe tli?J:?rd of any procee<lirigs..l)Ild (he -. ; ·· considers that .?y .q?qmon .oJ' Q{(\?i: ,p? w,,der this Act or under the Central Goo4s an,(?,ervic? Tax.Act J.>y any officersubordinate to him. is erroneous in so far as it iJ prejudicial to the int?i:?st <>fr?enu? imd ismegal or Impreper.or has not tak#J?,.Jn.to account. certain material ?, whether available at the· til:ne of. ?μan?e of th.e sai.d order or not Of in a)JlS?,quence of an ob??tion by, the, CompuyU? all<\ ,.f\\lrutpr, Gen? <>(Jpd? .. he may, .. if nc;cessai:y, stay ?e 9peration of such deQsion or orderfor ,sudl period as,bedeemJ,fit·and after giving the person cbncerned an opportunity of being heard ahd after making such further inquiry as may be necessary, pass such order, as he thinks just and proper, including enhancing or modifying or annulling thesaid decision, or order. Powers of RevisiOI Authority. (2) Toe Revisional Authority shall not exercise any power under sub-section (1), if- 113 (a), .?e.order. has be?n subif..Cf,, ? ,?an .. "pea,!.under ,section 107 or section! 12 tit"sectton 117 or section ·118; or · ··· '!·' ·· (\?) the pqiod. ?tjfi? un9? s?b-?!,i<>? ,(2) of ?F?<?n. 101 hafiiotyetexp?d or mote ,ffi,ii t;tee .·· years have expirep aftef1lJ:? P?ll!S of th?.,Qecision or order sought to ?:?d? 9r , .. (c) the order has alreadytbeen: ??'fof?on under this section at an earlier stage; of·' ,:, · ' ' (cl),' the order has?? inextr?of the powers ,> undersub-section (11: ... ./ . . ' .;; ?-\l'f ?;'.';:·· .... . -? Provided• that '.flie Revwonal · Authorify4nay ?nan· order under sub-section. (1) on any point which has nof'l,een flOsed and decided in an appdl· referred to ia:·? .. (a) ofsab-section (2), before the expiry ofa perit>G'ofone }'ftl' ftotn the datehfthe order insuchappealerbeforetheexpiry$J)dti8d?threeylmsrefe.tred to. in clause Cb) of that sub-section, wlii?et is laten,, ·'"' ,;., (3)t,, Bvery ·Older·passed•in revi$ion·:under.sulJ..sedion · i(l) ,: 1 shall, su1Ject to the provisions ofsedfon· t,J.,3-c,r ?on 117 or sectio11·118"be·final and bitldmgonthepartie,s. f ,!qt :'} .\(>J,: 1\.;;".? '• · (4)··: Iftke?dec:;isionor.order mvolffl.1anissue on which ,. ·, · · the Appalate 'liibunal or the High Court has given its decision in'som.e o?r proceedings andan appeal to the High Court or the Supreme Court against such decision · of tbe,•AJ>pellate Tribunal or the High Court is pending. · the ·penod,sttent between the date of the decision of the Appellate ''Iribunal. and. the date of lhe: decision. of the HigWCourt or the date of thededst<W.tofthe High Court andthe date of the decision"oftheSupreme Courtshall be • 11,; . txcluded in com.pt)ting the periocloflirnttaoon referred to ·in clause (b) of suh--secti<>n (!) whe,:e;? for revision have been initiat-1 by wa? 0,f ? ofa,notice under this section. · " ) ·1 · (5) Where the issuatlce of an,order :under,??on (1) is stayed by,the order. of a ? <n1;?ate 1iibunal, ,i. the period,of such stay shall????.,in computing the period of limita'tion reforted to in :daU# (b) ofsub- sectio?(?). ., .,. '??: (6) For the.purpo$CS of.this section, the ?:rDl,-;- (i) "record· shall include all rec'ords 'relating to any lcp? dlider this .A£t.>Miblble at theJime of :·,,.,,aamtnation·bythe R? A\Jthority; 114 Procedure before Appellate 'Iiibunal. President and Qf Appellate Tribunal., their qualification, · appointment. con · df service. etc. .1h!.1)';,?i?.''.'?4,??op,??s??1i' fuqμae intimation ?? ?y any officer lower in ran1c than the Revisioajif Authority.

U.J ,. -?Sutif ?Ef? lie p?io? o .. : f.f¥¥t}l??t,'? ... ? Goods and Appellate Tribunal aal ' · ..•• < Se?·· Tax 'fn1>unal <;oristttj.tted' . un?f the Central Benches thereof. ··? r"'.iGb? and seitim .?·. !4.cf',shall be tnl! 'Appellate Tribunalfor Hearing' appeils against the orders passed byw.,e Appe? Authori,ty or the ltevisional Auth4>rity under this A.cl. ,· ' .. • . • (2) The co?tutu>? and,.-jsq.i,ction,,,of th? .State.,Bench andthe Area Benches ? .• iJ\7?,;.;State:,? be in accordance with the provisions of section ofthe Ge;t,.g\??.Services Tax Ast ?the rul? made ,th.qe\J.D.?.: . ,; ' 110. The rqualifications, appeiatment, salary anil ,.Uowances, ., terms of<>ffice, re$ignatiae 1'Dl4 ?oval;of tbe Ptesident and Members-of-the .State?Be¥ltrand Area Benches shall be· in accordance with.. e provisi9ns.of section .11,0 'of th?- Ce? Goods and

The rqualifications, appeiatment, salary anil ,.Uowances, ., terms of<>ffice, re$ignatiae 1'Dl4 ?oval;of tbe Ptesident and Members-of-the .State?Be¥ltrand Area Benches shall be· in accordance with.. e provisi9ns.of section .11,0 'of th?- Ce? Goods and Services Tax Act.

( 1) The Appellate Dibunal shall not. while disposing of ?y uit proceedings before it oran appeal before tt; ,\)e bound by th?? down ip.,-1Qode of Civil Procedure. 1908, but shall be guided by the principles of natural justice and subject to theother provisions of this Abt and theJUl.es made·thereunder, 'the Appellate;'.?i? shall have power:40 regulate.its o?ure. 5ofl908 Sofl908. of 1872. .,-_,. !?f "1_ :n . . (2-)r Thei·?·:Tribunal $hall.. fQJJtMq?s of · dischaqpng.,it&&mcti9ns llll<ier this ?y.ethe.sam.e \;,.PQWer?.)S ? ve? in a ?yj.J, court \lllder .dte.C?de of Givil??? ... ? apng a suitilli;:?pf the .foJJp)ring ?. namelyt- · ·c ,'{a) summoning and enforcing·.? attendanc:¢,Q{ any ::il)mon and epmioing him oil path; (b} :1 feqUiring ·· the discovery and produdtion of documents; ( c) receiving evidence on affidavits; " rr?(??ecfnSthe provisions ofsections and124 of ,L <' rtr : ,fue 1ndiarr Evidence Ac:tl,tl872, requisitioning any ·· p?td·dr?toracopy·ofsuchrecord ,,,,:. Mdoaimentfroriianyoflice; .. U "' ( e) issuing commissions for the exmilnation of witnesses or documents; (0 dJsmissing a repres?rl'tati<)jj fot'detadli'-br deciding ·::., C t!t·e;lJ'.!,r:e; i ffr, ' .), l :.t ·Jg) settiogi.r.ati<kt ?y1 9r44J1 ,of.:diSIQj_s?l of any ·r??t4?fQi;,4e,fi11Jlt PJi?U)Y¥,?,passed by it ex parte; and

45of 2of1974 j ?r_ f, ""'f (hl any other matter whidi may be,piescrihed. (3) ·Any order made' by tlie?te·Tribunal may be enforced by it in the same mahget B.fl_it,_wefe a decree :::i?::?;i:t¥???t1=: of its orders to the court within the local liwts of whose ju,r??on,- •, N ' ''-. (a) in the -case of ,an order against· a. company,· the :registered office •• of the company is si?red; or {b) ?Jh?-?of aii·? aga?Jny Qtberp?the . person cc:,n? voJ?resi9es or carries on :: l>usiaess or persoaally.work.$Jor gain. " (4) All ?gs beffirt the Appellate TiibunaUhall be deemed to ?.judi?j?dirlas,m:thin ??r?:?· of sections"l93 and m: and for tlie purposes'of section · of the Indian Penai Code, and the Ap??.'fBI>W'lal shall be·deem$(l·to be_fivil co? -, for the p? of section and Chap?μvl otthe Q>d,e of 9?. Procedure, 1n-?. ) . 112. (I)' Any?n ?eved·by? order passt.d-?-him ?toAppellate under section or section of this Act or the Cmtral Tribunal.. Goods and Services Tax Act may appeal to the Appellate Tribun,1-agahlst such order within.tht:ee mpnt}is from ,tqe date on w}licb,the order sougbi tobA? against is communicated to the person preferring the.? (2) The ?e Tribunal ?y? in its discretlen, refusF _to admit any stach appeal wliere the tax or input,tax gedit involved or the difference in tax or input., fax credit involved or the amount of fine, fee orpen?detennlned by such otder;cloes not exceed fifty tho?rupees. · (3) The Commissioner may, on his own motion, or upon re??est from. the ,Co?_missionei:io,f ??tNJ·.? -? for 8=Ild examine tile record o(ant oi;ci? pass? by t}if Appellate Authority or .. the Revis19?,,Mltpority ,¥D4er this Act or under the Central Goocls And Seryifes Tax Act for the purpose of satisfying himself as to the legality or:proptiety of the.aid orclerand may, by•, direct. any officer subordimite u. him to. applylo :the>Appeliattf"( Tribunal within six months froin the dafe'.on which the said order has been passed for determination of sdi:h points l;rising out of the ?d orde? ? 111ay be spetjfiecl bfthetommissio:trer'in tiis ordJ?.11 ?t>.6Ul ;_;; . .)' 1·, ,\J

(4) Where in pursuance of an order under sub-section (3) the authorised officer· ·makes an .•apPlication tD the Appellilte Tribunal. such; ??cation shall be dealt with by the Appe?? .. Tri\,u,nal. ? if it were an appeal made against the orderunder sub?section.( 11) ofsection .107 or under sub-section.(i,)'of section 1Q8 and t?e pi;ovisions of this Act shall apply to such application, as'tb:ey apply in relation to appeals filed under sub-section (1). (5) On receipt of notice that an appeal has been p1eferred under thissection, the party against whom the appeal hasbeen prefared may, notwithstanding ?t,·.he may not have api:,ealed against such o.rder or any pa,t thereof, file, within . forty-five diys ()f the receipt 'of notice. a memorandum of aoss-dbjectfons. 'verified . in the prescribed manner, against any part of the orde?appealed against andrs?,?emorandum.? be.·dispo,ed of by the AppelJ?e 'InbunaL asJf.it wer?.? appeal presented within tlie time specified in sub-?on (1). . - ? .. ' ..... ··, ;;:,. ,: ·: ' .(6) The Appdla?,.,1\il>? may, ?J?it ?.·· appeal within three mo11tM? the expiry of the period referred to in sub-section (1 ),. or permit the filing of a .ineJnorandum.of cross-objections within forty-five days after the expiry of the period referred to in sub-sectio? (?), if it ls sapsfied that there? .. dent.cause for n6fpresenting it within that period. ·· ·· ? · · (7) An· appeal to· the · Appellate Tribunal shalt be in such form, verified?;inannefand shall beaccompanied by such fee, as·?ay be prescnbed, (8) No app?a1. shall? filed under s?b-section O.t\inl?s the appellant has gaid- · · (a) in ?1Uch,partof the amount of tax, interest, fine. fee an4?arisingfrom the μnpugnedorder. as is admitted by him. and : ·4)• }K,fff. a. L . (b) a sum eq?l,to twen..ty per cent. of the remaiqing amount or? μi dispute? in addition to the ?ount paid uriC,er •. stil:,??dion .(6) . of the section . 107, arising from die ?a order, in relation to which the appeal has been filed. ' (9) Wherethe ?t has paid thei;am<>unt as per· sub- section (8), .?·?feovel'Y ?p ... for the·.?ce amount shall ?.??ed to be stayed till the disposal of the appeal (10) £very application ??fore. the App?? Trib1'A'1• - .. ,: :.1 ,)·.-., ... - .•. ,.,,-,-_,.,,__ .,

,118 114. The State President shall exe:tciseqsuch 1::, financial and administrative powers over the State.Benchand Area Benches of the.App?te Tribunal in a State, as may be prescribed: ; . .' :. :??'. ' . . {- ; ' ? .· '. Pr9yi(,led , that tile State Jlr1??nt .sliall}bm'.e the auth9l'ity,Jp delegate suchof hisfinantjilAOd administrative powers as he may thinkfit to any other Member or anroffker ofthe State Bench 1tti Area ??nches, subJecf to the condition· that sucbMembe?.or officer shalt;wh?? 1exercising'such delegated powers, continueJfact under the 'direction, control and supervisiQn ofthe State President. \ ,, 11?. ,Where an amount paid.1->y .the appellant .. un4" sub-section (fl).;0f section 1()7 or under sult,5'Ctioo (8).·of section lsrequired to be refunded consequent to·any,ffrd.er?f the Appellate Authority or of the Appellate Tribunal, interest at the rate s?ed·undet?n shall befayable in:respect of suck reflmd fro? the date of payment of the amount till the date ofrefund of such amount. 116. (1) Any person who js entitled or required to appear before an officer appointed under this Act, or ·the 'Appellate Authority or the Appellate Tribunal inconnection with ·-any proceedings. under J:hisi Ad, may, o$erwise than ·::when ·required under this· Act to appear personally dor·examioation on oath or affirmation; subject to the . other provisi@ns,of this section, appear by an authorised representative, . Im (2) For the purposes ofthis,A.d,'the expression "authorised representative" shall .. mean .. a person authorised by the person referred;lo uf sub?sectfon (l) appear on his pehaff;'beingL'l• i .. .. '" (a) his relative,orregular,empioyee; or (b) an advocate who is entitled to practice in any court in India; Md wbo has. - beendebarred from pr?ticipg betore any court m India; or (c) llny chartered accountant a cost accountant or a C()D.tpany.,??retary, whQ holds a certificate of practice atl9· who has · not been debarred from practice, or ( d) a retiredoffi?er.pf the Gorvm?r(ftfl,JM?partment of any State Government or U(;l}An :teJ',ntfry or ofthe Board who, during his service unou- the , G.q?ernme:qt., had wQTke.d in a pqst not ?ow tl\e ,_,, rank than tbat,of a Group-B G.azett?41?ffi.?r for a period of not le? th@n two years: Financial administrative ·power_ State President. Interest on refund of amount paid for admission of appeal. Appearance by authorised represen...,

provided' that 'sttlb' officer, .?. nof .be entitled: w· appear before any proeeedingsundef tJns·Actfotla'period ofont year from the dateofhi:s retirementorresignation;or·· :" , ··t (e) .?Y,Pe?nj?-·?·1??fn ii?thoris?d't?·? as a goods and SC?rvi??rac!f?oner qiibe]wf of the concerned registered persorl': ' · ·· ? .. '' (3)',:No'l)erson,- r:w (a},???i? .. J.? ?' . ' (b) whois convictedof an offence connected with any proceedingscundedlusAct, the)Central Goods atld .. Services Tax A.¢,tb.d:lntegratedGood&and Services Tax Act or the Union,Terdt?Goods and Services •.tu ·.Act. orUJlder. tb.e qisUng MON.ind.er any of the Acts passed by a State Legislature dealliig with ··the imposition-of taxes on sale ofg()()()s or supply of .. goods or seryj? ,9r ppμt; or · - " ......._ ·_ . • f ,,, . ?· .4'l A. >.f.J, ·' I , .... ( c) who is found guilty of miscOJ¥l\l!rtP}'.the prescribed ·"' . aμthority; ' ·, ,; . . . (cl} ?JiohaJ??juned.?an?e?t, shall be cpi:Mfied tb r??r?ent any ?rson under sub: ?on (1)-.-.,,,. ' .·.., ?, ? ,, •(i) for all timesin case of persoas refmdd to in ,dauses{ah(b)and(c); and•<) ii (ii) for .the peritill durlrig which' the insolvency continues in the case of a perscn referred to in clause {d). (4) Any penon,•who has been disqualified underthe provisio? o'hhe Central Goodsand ServicesTax Act or the Goods and Services Tax Act of any other State or tbddaion T? Goods and Services Tax Act shallbe deemed tobe disqualified under this

(I)' Any?n ?eved·by? order passt.d-?-him ?toAppellate under section 107 or section 108 of this Act or the Cmtral Tribunal.. Goods and Services Tax Act may appeal to the Appellate Tribun,1-agahlst such order within.tht:ee mpnt}is from ,tqe date on w}licb,the order sougbi tobA? against is communicated to the person preferring the.? (2) The ?e Tribunal ?y? in its discretlen, refusF _to admit any stach appeal wliere the tax or input,tax gedit involved or the difference in tax or input., fax credit involved or the amount of fine, fee orpen?detennlned by such otder;cloes not exceed fifty tho?rupees. · (3) The Commissioner may, on his own motion, or upon re??est from. the ,Co?_missionei:io,f ??tNJ·.? -? for 8=Ild examine tile record o(ant oi;ci? pass? by t}if Appellate Authority or .. the Revis19?,,Mltpority ,¥D4er this Act or under the Central Goocls And Seryifes Tax Act for the purpose of satisfying himself as to the legality or:proptiety of the.aid orclerand may, by•, direct. any officer subordimite u. him to. applylo :the>Appeliattf"( Tribunal within six months froin the dafe'.on which the said order has been passed for determination of sdi:h points l;rising out of the ?d orde? ? 111ay be spetjfiecl bfthetommissio:trer'in tiis ordJ?.11 ?t>.6Ul ;_;; . .)' 1·, ,\J (4) Where in pursuance of an order under sub-section (3) the authorised officer· ·makes an .•apPlication tD the Appellilte Tribunal. such; ??cation shall be dealt with by the Appe?? .. Tri\,u,nal. ? if it were an appeal made against the orderunder sub?section.( 11) ofsection .107 or under sub-section.(i,)'of section 1Q8 and t?e pi;ovisions of this Act shall apply to such application, as'tb:ey apply in relation to appeals filed under sub-section (1). (5) On receipt of notice that an appeal has been p1eferred under thissection, the party against whom the appeal hasbeen prefared may, notwithstanding ?t,·.he may not have api:,ealed against such o.rder or any pa,t thereof, file, within . forty-five diys ()f the receipt 'of notice. a memorandum of aoss-dbjectfons. 'verified . in the prescribed manner, against any part of the orde?appealed against andrs?,?emorandum.? be.·dispo,ed of by the AppelJ?e 'InbunaL asJf.it wer?.? appeal presented within tlie time specified in sub-?on (1). . - ? .. ' ..... ··, ;;:,. ,: ·: ' .(6) The Appdla?,.,1\il>? may, ?J?it ?.·· appeal within three mo11tM? the expiry of the period referred to in sub-section (1 ),. or permit the filing of a .ineJnorandum.of cross-objections within forty-five days after the expiry of the period referred to in sub-sectio? (?), if it ls sapsfied that there? .. dent.cause for n6fpresenting it within that period. ·· ·· ? · · (7) An· appeal to· the · Appellate Tribunal shalt be in such form, verified?;inannefand shall beaccompanied by such fee, as·?ay be prescnbed, (8) No app?a1. shall? filed under s?b-section O.t\inl?s the appellant has gaid- · · (a) in ?1Uch,partof the amount of tax, interest, fine. fee an4?arisingfrom the μnpugnedorder. as is admitted by him. and : ·4)• }K,fff. a. L . (b) a sum eq?l,to twen..ty per cent. of the remaiqing amount or? μi dispute? in addition to the ?ount paid uriC,er •. stil:,??dion .(6) . of the section . 107, arising from die ?a order, in relation to which the appeal has been filed. ' (9) Wherethe ?t has paid thei;am<>unt as per· sub- section (8), .?·?feovel'Y ?p ... for the·.?ce amount shall ?.??ed to be stayed till the disposal of the appeal (10) £very application ??fore. the App?? Trib1'A'1• - .. ,: :.1 ,)·.-., ... - .•. ,.,,-,-_,.,,__ .,

,118

The State President shall exe:tciseqsuch 1::, financial and administrative powers over the State.Benchand Area Benches of the.App?te Tribunal in a State, as may be prescribed: ; . .' :. :??'. ' . . {- ; ' ? .· '. Pr9yi(,led , that tile State Jlr1??nt .sliall}bm'.e the auth9l'ity,Jp delegate suchof hisfinantjilAOd administrative powers as he may thinkfit to any other Member or anroffker ofthe State Bench 1tti Area ??nches, subJecf to the condition· that sucbMembe?.or officer shalt;wh?? 1exercising'such delegated powers, continueJfact under the 'direction, control and supervisiQn ofthe State President. \ ,, 11?. ,Where an amount paid.1->y .the appellant .. un4" sub-section (fl).;0f section 1()7 or under sult,5'Ctioo (8).·of section 112 lsrequired to be refunded consequent to·any,ffrd.er?f the Appellate Authority or of the Appellate Tribunal, interest at the rate s?ed·undet?n 56 shall befayable in:respect of suck reflmd fro? the date of payment of the amount till the date ofrefund of such amount.

(1) Any person who js entitled or required to appear before an officer appointed under this Act, or ·the 'Appellate Authority or the Appellate Tribunal inconnection with ·-any proceedings. under J:hisi Ad, may, o$erwise than ·::when ·required under this· Act to appear personally dor·examioation on oath or affirmation; subject to the . other provisi@ns,of this section, appear by an authorised representative, . Im (2) For the purposes ofthis,A.d,'the expression "authorised representative" shall .. mean .. a person authorised by the person referred;lo uf sub?sectfon (l) 18 appear on his pehaff;'beingL'l• i .. .. '" (a) his relative,orregular,empioyee; or (b) an advocate who is entitled to practice in any court in India; Md wbo has. - beendebarred from pr?ticipg betore any court m India; or (c) llny chartered accountant a cost accountant or a C()D.tpany.,??retary, whQ holds a certificate of practice atl9· who has · not been debarred from practice, or ( d) a retiredoffi?er.pf the Gorvm?r(ftfl,JM?partment of any State Government or U(;l}An :teJ',ntfry or ofthe Board who, during his service unou- the , G.q?ernme:qt., had wQTke.d in a pqst not ?ow tl\e ,_,, rank than tbat,of a Group-B G.azett?41?ffi.?r for a period of not le? th@n two years: Financial administrative ·power_ State President. Interest on refund of amount paid for admission of appeal. Appearance by authorised represen..., 119 provided' that 'sttlb' officer, .?. nof .be entitled: w· appear before any proeeedingsundef tJns·Actfotla'period ofont year from the dateofhi:s retirementorresignation;or·· :" , ··t (e) .?Y,Pe?nj?-·?·1??fn ii?thoris?d't?·? as a goods and SC?rvi??rac!f?oner qiibe]wf of the concerned registered persorl': ' · ·· ? .. '' (3)',:No'l)erson,- r:w (a},???i? .. J.? ?' . ' (b) whois convictedof an offence connected with any proceedingscundedlusAct, the)Central Goods atld .. Services Tax A.¢,tb.d:lntegratedGood&and Services Tax Act or the Union,Terdt?Goods and Services •.tu ·.Act. orUJlder. tb.e qisUng MON.ind.er any of the Acts passed by a State Legislature dealliig with ··the imposition-of taxes on sale ofg()()()s or supply of .. goods or seryj? ,9r ppμt; or · - " ......._ ·_ . • f ,,, . ?· .4'l A. >.f.J, ·' I , .... ( c) who is found guilty of miscOJ¥l\l!rtP}'.the prescribed ·"' . aμthority; ' ·, ,; . . . (cl} ?JiohaJ??juned.?an?e?t, shall be cpi:Mfied tb r??r?ent any ?rson under sub: ?on (1)-.-.,,,. ' .·.., ?, ? ,, •(i) for all timesin case of persoas refmdd to in ,dauses{ah(b)and(c); and•<) ii (ii) for .the peritill durlrig which' the insolvency continues in the case of a perscn referred to in clause {d). (4) Any penon,•who has been disqualified underthe provisio? o'hhe Central Goodsand ServicesTax Act or the Goods and Services Tax Act of any other State or tbddaion T? Goods and Services Tax Act shallbe deemed tobe disqualified under this Act.

(1) Any person aggrieved by any order passed bythe State Bep.9} gr Area .13el1Ch?s. of th!! ?? Tribunal ma;,, ije an? to?e High Go\Jltap? the l¥gb Caurt may J?*uch appeal, ifJt i?.r,uisfjep. th,at tb.e case involves a substantial question of law. . (2) An appeal under sub-section (1) shall be filed within a t·,peq.OJII of! OM tiurutred and eipty days from· the date 1c,n wja•Jhe.o,der -,p.Ied·?:-is recd.ml.by the , agg??dpeffim g.c\Jt sllalbe in such fonW"wrified in such manner as.maybe PJ'?Cribedt : .. Provided that the High Court may entertain an appeal after the expiry of the saW petiod iHt.ris satisiiecHltaUhere'W'a& 8Uffideitt cau? ?? ?t?fiPf!lt,? ?':l'W-P,?npd.

120, q) Where ?e, High C?W, is" ?s?g that a .,$Ubstantial question of la.w u,J.nv<>lv.e4 ,in ?y-?,it sh?Jprm$te , that question and the ap?,sh;ill 1;,e heard only; on the ,iuesp.on so .fwp1ul?ted, ?dffle respQ,n?ents shall, at the .·, ??mgofth?.appeal, ?e ?owed to ?e that the case 'does not involvf?1Nesti<>n? . ?..l\; l. . . . . ·, Provided that nothing in thissub-section shall be deemed to take aw?y or. abridge the power of the court to. hear, for reasons to be recdrded, the appeal On any oth?r ?iiostantial <JUC$tiOn oflaw not formulated by it, if itis satisfied? that the case involves such _question. (4)r ;'The· High' Court shall, decide: ,the question of law i'.! ·· · so fonaulated' and racdfver: such . judgment thereon. containing the groundli,1on which· such decision is " founded and.may.award such cost as,it \'.teems fit. ':>!: ii ,"; __ ,:} ;_ -( ,, ,. (?) 'Ihe High Court may 4etermine any isSIJf:bWhich- (a) has not been detenninedby the State Bench or Area Benehes; ot . ..1. s , · . . (b) hasbeen wrongly determined bf the .State Bench of Area Benches. by ? of a decision on such question oflaw 3:5 herein f?ed 1'? in. sub-section. • ., ,<' •• J';a,? •. ,Ji • .. ·" ?; ·· · • "-,.·· .· • ( 6) Where an appeal hasbeen filed before the Kigh Court, it shallbeJieard by a Bench-of not less than two Judges of the High Court; and shall·.be decided in accordance with the o:einiqn of such Judges or <,>f the majority, if any, of I , such Ju?es. -: t, • • '; ,· , (7) Where there is no such majority, the Judges shall state the point oflqw upon wbich they dttfer and the case shall, then. be-heard upon tllat; point otiy, l,y one or more of the other Judges of the High Court and such point shall be decided according to the ,opinion of.tb.e,majority of the Judges who have heardthe case including those who firstheard it · Ji.e Where ?e·?. Court?ers a'judgtndlt'ih an appeal filed btfdre it un?er tru?'sectloft, efe?iffialH,e given to such judgment by either side. on the hims df l certified copy of the judgment." ·•·•0"1>' ' . ? ?r (9.} Save as otherwise provided :in this-A-ct the"prQVisions.of \ dl1e <oode .oftCi¥QIProcedute, 1908, relat4lgto,appeals to " the<High Court shalt, as far as rMyt'ierapply:in the case of appeals under this section, ' ,x•, L,J (8) Sofl908 ?1 lf 'i 118. (l) .An appeal shaJllietoth¢ Supteme£ourt.- (a) from any order' passed by lli? ·1'i!ti8ttit;Bertcknr Regional Benches of the Appellate Tribunal; or Appeal to Supreme Court.

ofl908 (b) from any judgment . or • order passed by the High Court in an· appeal made under section in any case which, on its own motion· oron an application made by or on behalf of· the party aggrieved, immediately after passing ofthe judgment or order, the High Court certifies'fu lfe a fit one for appeal to the Supreme Court. (2) )he provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under this section as theyapply in the case of appeals fromdecrees of a High Court. (3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in section in the case of a judgment ofthe

(l) .An appeal shaJllietoth¢ Supteme£ourt.- (a) from any order' passed by lli? ·1'i!ti8ttit;Bertcknr Regional Benches of the Appellate Tribunal; or Appeal to Supreme Court. 5 ofl908 121 (b) from any judgment . or • order passed by the High Court in an· appeal made under section 117 in any case which, on its own motion· oron an application made by or on behalf of· the party aggrieved, immediately after passing ofthe judgment or order, the High Court certifies'fu lfe a fit one for appeal to the Supreme Court. (2) )he provisions of the Code of Civil Procedure, 1908, relating to appeals to the Supreme Court shall, so far as may be, apply in the case of appeals under this section as theyapply in the case of appeals fromdecrees of a High Court. (3) Where the judgment of the High Court is varied or reversed in the appeal, effect shall be given to the order of the Supreme Court in the manner provided in section 117 in the case of a judgment ofthe High Court.

Notwithstanding that an appeal has been p?qerred to the High Court or the Supreme Court, sums due to the Government as a resultof an order passed by the National or Regional Benches of the Appellate Tribunalunder sub-section (1) of section or an order passed by the State Bench or Area Benches ofthe Appellate Tribunal under sub-section (1) of section or an order passed by the High Courtunder section 117, as the case may be, shallhe payable in accordance with the order so passed. Sums due to be paid notwithstanding appeal etc. · 120. ( 1) The Commissioner may, on the recommendationsofthe Appeal not to be filed in Council. from time to time, issue orders or instructions certain cases. or directions fixing such monetary limits, as he may deem fit, for the purposes of regulating the filing of appeal or application by theofficer of the State tax under the provisions ofthis Chapter. (2) Where, in pursuance ofthe orders or instructions or directions issued under sub-section ( ), the officer of the State tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, it shall not preclude such officer of the State . tax from filing appeal or application in any other case involving the same or similar issues or questions oflaw. (3) Notwithstanding the fact that no appeal or application has beenfiled by the officer of the State tax pursuant to the orders or instructions or directionsissued under sub-section (1), no person, being a party in appeal or application shall contend that theofficerof the State tax has acquiesced in the decision on the disputed issue by not filing an appealor application.

(4) The.? Trib.\Ulal or court hearing such.appeal or appl;.catipn shall .?'WC reprd to the circumstances under which appeal or applicatio? was not filed byJhe officer of the Stati tax in pursuance of theorders or instructions or directions issued under ?\lb-section (1). 121. Notwitqstanding anythin.g t&,:die contrary in any provisions of this Act. no appeal shall lie against any deciston t;lken or order passed by an officer of State tax if suchdecisiontaken or order passed relates to any oneor more of the follO'Whlg matters. namely:? ·· ·. (a) an order of the Commissi9ner oi other authority empowered to direct transfer of proceedings from one officer to another officer; or en·· (b) an order pertaining to t:!ie. seizure or retention of 1>9oks of account, r? andother documents; or (c) an order sanctioning prosecution under this Act; or (d) an order? hder section 80. Non Appealable decisions andorders.

C?pTER XIX .a..,·,.,-,l .. _..Jt,a ,· " · ,·', OFFENCES AN:Q PENALTIES 1:22. (1) Where a taxable pers?m who- (i) supplies any goods Qr services or both wifbput issue of any invoice or issues an incorrect or fafse invoice with regard to any such supply; (ii) issues any int?ice oi'biq \Vithout supply of goods or services or both in violation of the provisions of . this,Act or the rules made thereunder; (iii) collects any amount as tax butfails to pay the same to the Government beyonda period of three months from the :date, on which such payment becomes duer (iv) collects anytax'in contravention of theptovisions of this Act but fails to pay the same to the Government _ beyond a peried-ofthree months from the date on · which such payment becomes due; (v) fails to deduct the tax in terms of sub-section (I) of section Sl, 01: d¢ducts all amount which is less- than the; amount required to be deducted under the said sub-section, or where he fails to pay to the Government under, .. sub-section (2) thereof the amount de4qc?das' tax; .. (vi) fails to collect tax in terms of sub-section (1) of section 52, or collects an amount which is less than the amount , required to he. collected under th,e said sμb-s?ori o? fhere he fails to pay to the Government tn:· amount collected as tax under sub-section. (3) efseetion 52; (vji) takes or, μtilizes input tax credit without actual · receipt of goods or services or both. either fully or partially, in contr.wentio.n ,Qf;the provisions of this · Act; or the .rules made thereunder: ;, (viii) fraudulently obtains refund of tax under this Act; (ix) takes Of'distributes inpunax credit in contravention of section 20',,ar the rules made thereunder; (x) falsifi?:-<>rsubstjμii.tes financial records or produces · fake aceeunts cQJ:documents or furnishes any false informatiQ.Q Ol· return· with?? intention to evade payment ofaax-:due.under thi4> · Act: Penalty for certain offences.

(xi) (xii) '(xiii) «.\i.' (xiv) (xv) (xvi) (xvii) is liable to be regi,$feize$i under this Act. but fails to obtain registration; · furnishes any false information with regard to registration partlculars, either at the time of applying for registration, or subsequently; obstructs or prevents any officer in discharge of his duties· under this Act; transports any taxable goods without the cover of documents as may be specified in this behalf; suppresses his .turnover leading to evasion of tax underthis Act; fails to keep. maintain or retain books of account and other· ·documents in accordance with the provisionsof this Actor the rules made thereunder; fails to furnish information or documents called for by an officer in accordance with the provisions of this Act or the rules made thereunder or furnishes false information or documents during any proceedings under this Act; (mil) supplies, transports or stores any goods whichhe has reasons to believe are liable to confiscation under this Act; (xix) issues any invoice or document by using the registration number ·of another registered person; (xx) tampers with, ordestroys any material evidence or documents; (xxi) disposes off or tampers with any goods that have been detained, seized, or attached under this Act. he shall be liable to pay a penalty of ten thousand rupees or an amount . equivalent to the tax evaded or the taxnot deducted under section or short deducted or deducted but not paid to the Government or tax not collected under section or short collected or collected but not paid to the Government or input tax credit availed of or passed on or distributed irregularly, or therefund claimed fraudulently, whichever is higher. · (2) Any registered person who supplies any goods or services or both on which any tax has nQt been paid or short-paid or erroneously refunded, or where the input tax credit hasbeen wrongly availed or utilised fur any reason, other than the reason of fraud· or any willful misstatement or suppression of facts to evade tax, shall be liable to a penalty often thou.sand rupees or ten per cent of'the tax duefrom such person, whichever is higher.

(3) Any person who- ( a) aids or abets any of the offences specified in clauses (i) to (xxi) of sub-section (l}; (b) acquires possession of, or in any way concerns himself in transporting. removing, depositing, keeping, concealing, supplying, or purchasing or in any other manner deals with any goods which he knows or has reasons to believe are liable to confiscation underthis Act or the rules made thereunder; / ( c) receives or is in any way concerned withthe supply of, or in any other manner deals with any supply of services which he knows or has reasons to believe are in contravention of any provisions of this Act or the rules made thereunder; (d) fails to appear before the officer of State tax, when issued with a summon for appearance to give evidence or produce a document in an inquiry; (e) fails to issue invoice in accordance with the provisions of this Act or the rulesmade thereunder or fails to account for an invoice in his books of account, shall beliable to a penalty which may extend to twenty five thousand rupees. 123. If a person who is required to furnish an information return under section fails to do so within the periodspecified in the notice issuedunder sub-section (3) thereof, the proper officer may direct, that such person shall be · liable to pay a penalty of one hundred rupees for each day of the period during which thefailure to furnish such return continues: Providedthatthe penalty imposed under this section shall not exceedfive thousand rupees. 124. If any person required to furnish any information or return under section 151- (a)withoutreasonablecausefailstofurnishsuchinformation or return as may be required under that section, or (b) willfully furnishes or causes to furnish any information or return whichhe knows to be false, heshall be punishable with a fine which may extend toten thousand rupees and in case of a continuing offence to a further fine.which may extend to one hundred rupees for each day after the first day during whichthe offence continues subject to a maximum limitof twenty-five thousand rupees. 125. Any person, who contravenes any of the provisions ofthis Act or any rules madethereunder for which no penalty. is separately provided for in this Act, shall beliable to a penalty which may extend to twenty fivethousand rupees. Penahy for failure to furnish infonnation return. Fine for failure to furnish statistics.

( 1) The Commissioner may, on the recommendationsofthe Appeal not to be filed in Council. from time to time, issue orders or instructions certain cases. or directions fixing such monetary limits, as he may deem fit, for the purposes of regulating the filing of appeal or application by theofficer of the State tax under the provisions ofthis Chapter. (2) Where, in pursuance ofthe orders or instructions or directions issued under sub-section ( 1 ), the officer of the State tax has not filed an appeal or application against any decision or order passed under the provisions of this Act, it shall not preclude such officer of the State . tax from filing appeal or application in any other case involving the same or similar issues or questions oflaw. (3) Notwithstanding the fact that no appeal or application has beenfiled by the officer of the State tax pursuant to the orders or instructions or directionsissued under sub-section (1), no person, being a party in appeal or application shall contend that theofficerof the State tax has acquiesced in the decision on the disputed issue by not filing an appealor application. 122 (4) The.? Trib.\Ulal or court hearing such.appeal or appl;.catipn shall .?'WC reprd to the circumstances under which appeal or applicatio? was not filed byJhe officer of the Stati tax in pursuance of theorders or instructions or directions issued under ?\lb-section (1).

Notwitqstanding anythin.g t&,:die contrary in any provisions of this Act. no appeal shall lie against any deciston t;lken or order passed by an officer of State tax if suchdecisiontaken or order passed relates to any oneor more of the follO'Whlg matters. namely:? ·· ·. (a) an order of the Commissi9ner oi other authority empowered to direct transfer of proceedings from one officer to another officer; or en·· (b) an order pertaining to t:!ie. seizure or retention of 1>9oks of account, r? andother documents; or (c) an order sanctioning prosecution under this Act; or (d) an order? hder section

If a person who is required to furnish an information return under section 150 fails to do so within the periodspecified in the notice issuedunder sub-section (3) thereof, the proper officer may direct, that such person shall be · liable to pay a penalty of one hundred rupees for each day of the period during which thefailure to furnish such return continues: Providedthatthe penalty imposed under this section shall not exceedfive thousand rupees.

If any person required to furnish any information or return under section 151- (a)withoutreasonablecausefailstofurnishsuchinformation or return as may be required under that section, or (b) willfully furnishes or causes to furnish any information or return whichhe knows to be false, heshall be punishable with a fine which may extend toten thousand rupees and in case of a continuing offence to a further fine.which may extend to one hundred rupees for each day after the first day during whichthe offence continues subject to a maximum limitof twenty-five thousand rupees.

Any person, who contravenes any of the provisions ofthis Act or any rules madethereunder for which no penalty. is separately provided for in this Act, shall beliable to a penalty which may extend to twenty fivethousand rupees. Penahy for failure to furnish infonnation return. Fine for failure to furnish statistics. General penalty. 126

(1) No officer underthis Act shall impose any penalty for minor breaches of tax regulations. or procedural requirements and in particular, any omission or mistake in documentation which is easily rectifiable and made without fraudulent intent or gross negligence. Explanation:-For the purpose of this sub-section-- (a) a breach shall be considered a 'minor breach'ifthe amount of tax involved is less. than fivethousand rupees; (b) · an omission or mistake in documentation shall be considered to be easily rectifiable ifthe same is an error apparent on the face of record (2) The penalty imposed under this Act shall depend on thefacts and circumstances of each case and shall be commensurate withthe degree and severity ofthe breach. (3) No penalty shall be imposed on any person without giving him an opportunity of being heard. { 4) The officer under this Act shallwhile imposing penalty in an order for a breach of any law, regulation or procedural requirement, specify the nature ofthe breach and the applicable law, regulation or procedure under which the amount of penalty forthebreachhas been specified. (5) When a person voluntarily discloses to an officer under this Act the circumstances of a breach of the tax law, regulation or procedural requirement prior to the discovery of the breach by the officer under this Act, the proper officer may consider this fact asa mitigating factor when quantifying a penalty for that person. (6) The provisions of this section shall not apply in such cases where the penalty specified underthis Act is either a fixed sum or expressed as a fixed percentage. 127. Wherethe proper officer is ofthe view that a person is liable to a penalty and the same is not covered under any proceedings under section or section63 or section or section or section74 or section or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person. 128. The Government may, by notification, waivein part or full, any penalty referred to in section 122or section or section or any late feereferred to in section for suchclass of taxpayers andunder such mitigating circumstances as may be specified therein on the recommendations of theCouncil. General disciplines related to penalty. Power to impose penalty incertain cases. Power to waive penalty or fee or both

129. (1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means o.f transport for carrying the said goods and documents ?elating to such goods and conveyances shall be liable to detention or seizure and after detention or seizure. shall be released,- (a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods. on payment of an amount equal totwo per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such ?ax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five· thousand rupees, whichever is less, where the owner of the goods does ?ot come forward for payment of such tax and penalty; (c} upon furnishing a security equivalent to the amount payable under clause (a) or clause (b)in suchform and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. ( 3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b)or clause (c). ( 4) No tax, interest or penalty shall be determined under sub-section (2) without giving the person concerned an opportunity of being heard (5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub- section (2) shall be deemed to be concluded. · ( 6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (I) within seven days of such detention or seizure, further proceedings shall be initiated in terms of section 130: Detention, Seizure and release of goods and conveyances in transit

Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer. 130. (1) Notwithstanding anything contained in this Act, if any person- (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any· of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or ( v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, andthe person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation andthe person shallbe liable to penalty under section 122. (2) Whenever confiscation of any goods or conveyance is authorised by this Act, the officer adjudging it shall give to the owner of the goods an opμon to pay in lieu of confiscation, such fine as the said officer thinks fit: Provided that such fine leviable shall not exceed the market value of the goods confiscated, less the tax chargeable thereon: Provided further that the aggregate ofsuch fine and penalty leviable shall not beless than the amount of penalty leviable under sub-section (1) of section 129: Provided also that where any such conveyance is used for the carriage of the goods or passengers for hire, the owner of the conveyance shall be given an option to pay in lieu of the confiscation of the conveyance a fine equal to the tax payable on the goodsbeing transported thereon. (3) Where any fine in lieu of confiscation of goods or conveyance is imposed under sub-section (2), the owner ofsuch goods or conveyance or the person referred to in sub-section (I), shall, in addition, be liable to any tax, penalty and charges payable in respect of such goods or conveyance. . Confiscation of goods or conveyances arid levy of penalty.

2ofl974 (4) No orderfor confiscation ofgoods 1orfc::onveyarlce or for imposition of penalty shallbe' issu.ed withou.t givi11g1the pef5'41f an opportunit)t.of being'l?d. · . ., ., - ? . .i:: ? ;: {_i: J i.,.; (5) Where any goods or COllVCfaI!£C: .. are confiscated under this . Act, the title· of sudf; ? or conveyance shall thereupon vest in the ?t ('6) The proper· officer adjudging confiscation shaH .take and· hold possession of the things .eenfiscated and every officer of.Police, ()ll_tbetffi!llisiμQn of ?uch proper officer, shall assist him in taking ari<i;lioldl.ngrsuch .possession. (7) The proper rifficer m?. ?r ?ti,Lj,ing ,hμnsel(th.at. the confiscated goods or. conveyance. are not .. required ..• in any other proceedings under this Act and after giving reasonable ·time··not·· exceed.ing'three months to pay fine in lieuof confiscation, dispose ,of such goods or conveyance and deposit the sale proceeds thereof with the

Wherethe proper officer is ofthe view that a person is liable to a penalty and the same is not covered under any proceedings under section 62 or section63 or section 64 or section 73 or section74 or section 129 or section 130, he may issue an order levying such penalty after giving a reasonable opportunity of being heard to such person.

The Government may, by notification, waivein part or full, any penalty referred to in section 122or section 123 or section 125 or any late feereferred to in section 47 for suchclass of taxpayers andunder such mitigating circumstances as may be specified therein on the recommendations of theCouncil. General disciplines related to penalty. Power to impose penalty incertain cases. Power to waive penalty or fee or both 127

(1) Notwithstanding anything contained in this Act, where any person transports any goods or stores any goods while they are in transit in contravention of the provisions of this Act or the rules made thereunder, all such goods and conveyance used as a means o.f transport for carrying the said goods and documents ?elating to such goods and conveyances shall be liable to detention or seizure and after detention or seizure. shall be released,- (a) on payment of the applicable tax and penalty equal to one hundred per cent. of the tax payable on such goods and, in case of exempted goods. on payment of an amount equal totwo per cent of the value of goods or twenty five thousand rupees, whichever is less, where the owner of the goods comes forward for payment of such ?ax and penalty; (b) on payment of the applicable tax and penalty equal to the fifty per cent. of the value of the goods reduced by the tax amount paid thereon and, in case of exempted goods, on payment of an amount equal to five per cent of the value of goods or twenty five· thousand rupees, whichever is less, where the owner of the goods does ?ot come forward for payment of such tax and penalty; (c} upon furnishing a security equivalent to the amount payable under clause (a) or clause (b)in suchform and manner as may be prescribed: Provided that no such goods or conveyance shall be detained or seized without serving an order of detention or seizure on the person transporting the goods. (2) The provisions of sub-section (6) of section 67shall, mutatis mutandis, apply for detention and seizure of goods and conveyances. ( 3) The proper officer detaining or seizing goods or conveyances shall issue a notice specifying the tax and penalty payable and thereafter, pass an order for payment of tax and penalty under clause (a) or clause (b)or clause (c). ( 4) No tax, interest or penalty shall be determined under sub-section (2) without giving the person concerned an opportunity of being heard (5) On payment of amount referred in sub-section (1), all proceedings in respect of the notice specified in sub- section (2) shall be deemed to be concluded. · ( 6) Where the person transporting any goods or the owner of the goods fails to pay the amount of tax and penalty as provided in sub-section (I) within seven days of such detention or seizure, further proceedings shall be initiated in terms of section 130: Detention, Seizure and release of goods and conveyances in transit 128 Provided that where the detained or seized goods are perishable or hazardous in nature or are likely to depreciate in value with passage of time, the said period of seven days may be reduced by the proper officer.

(1) Notwithstanding anything contained in this Act, if any person- (i) supplies or receives any goods in contravention of any of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or (ii) does not account for any goods on which he is liable to pay tax under this Act; or (iii) supplies any goods liable to tax under this Act without having applied for registration; or (iv) contravenes any· of the provisions of this Act or the rules made thereunder with intent to evade payment of tax; or ( v) uses any conveyance as a means of transport for carriage of goods in contravention of the provisions of this Act or the rules made thereunder unless the owner of the conveyance proves that it was so used without the knowledge or connivance of the owner himself, his agent, if any, andthe person in charge of the conveyance, then, all such goods or conveyances shall be liable to confiscation andthe person shallbe liable to penalty under section

Without prejudice to the profuions c6htaihed]n the Code of Criminal Procedure, '1973, no·,confisatton: made or penalty imposed under the provisions of this· Act or: the rules made thereunder ?all prev?tthe intliction,J>f any otper punishment to .which the person affected therF?Y.}s liable under the provisions ofthis Act or under any oiji$?w for' the time being in force. · · ·· 132. (1) Wh,oever: commits any of the rJollowing offences, namely:-· (a) . supplies any goods or s.efVic? o,r both without issue of any invoice, in violation.of the provisions of this Act, withthe intention to mile tax; (b) issues any invoice or bill without supply of goods orstM.ces or both irniolattotn,f?provisioll$ of this Act, or the rules made thereunder leading to wrongful availment or vtiliu.tion of inputtax credit or refund. cf tg; (c) avails inpuf tu?c??di.{usijig such invoice or bill referred to in clause (b ); (d) collects ;iny amount as. tax but, fails to pay the same to the Government beyon,d ;period of three months· from the date ·OJ). which such payment becomes due; ·· {e) ·ewdes tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not coveredunder clauses (a) to (d); Confiscation or penalty notto .interfere with other punishments. Punishmentfor certain offences

(f) falsiij??.or.§μbsti?tes.fina,w;ial records or produces fake accounts oi;,,documen?,?rfurnishes any false information with,an tntention-to evade-payment of tax due under this Act; (g) obstructs, or p? ?y officer in the discharge of hisduties underthis Act; (h) »acquires possession ·of, or in any,way. concerns himself in transporting,removing, depositing, keeping, concealing, • supplying, or purchasing or in any other: manner deals with, any goods which heknows or has reasons to believe are liable to confiscation -under this 'Act· or the rules made thereunder; ·:. r·? ':,: . (i) receives or is in ?y way concerned with the supply of, or in any other.manner dealswith any supply of services which -be knows or has reasons to believe are in contravention of any provisions of this Act or the 'rules made ?ereunder; {j) tampers with« destroys any materialevidence or documents; · (k) fails to supply h?y information . whichhe is required t?_supprilliider this Act or the rules made thereunder or (unless with a reasonable belief. the burden of proving which shallbe upon him, that theinformation supplied by him is; true) supplies false information; or (l) attempts to coinfuit; ijr.abets the commission of any of the offences. iW.entfoned in. clauses (a) to (k) of this section, shall be punishable- (i) in cases where.the' amount of-tax evaded or the amount of input tax credit wrongly availed or utilised ·or• the amount ofrefund wrongly taken exceedsfive hundred lakh rupees. with imprisonment for a term which may extend to five years ana with fine; .. (ii) in cases wherethe amount of tax evaded or theamount of input tax credit wrongly availed or utilised or the amount ofrefund wrongly taken exceeds two hundred lakh rupees but does not exceed fivehundred lakh rupees, with imprisonment for a term· whi?h may extend to three years anciwith fine;

(iii) (iv) in the case of any other offence where 'the amount oftax evaded or the·amount of input tax credit wrongly availed· or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees bu? 4oes not exceed two mndred lakh rupees; witl(miprisonment for a term ""'hich may extend· to' ope year and with fine; · · in cases where he commits or abets the commission of an offence ,specified in clause (f) or clause (g) or clause (j), he .shall be punishable with imprisenment' ··· for a term which may extend to six months or with fine or withboth. ' iofl974 (2) If any person convicted ofan offence underthis section is again convicted of an o:ffem:e under this section, then, he shall be punishable for the second and for. every subsequent offence with imprisonment for a term wi.h may extend to five years andwith fine: . (3) The imprisonment referred to in clauses (I), (ii) and (ill) ofsub-section (I) and sub-section (2).shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the-Court, befor a term not less than six months. (4) Notwithstanding anything contained in 'the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section (5) shall be non-cognizable and bailable. · ( 5) Toe offences spec · e · · ·' -··?< ' or clause (b) or clause (c) or clause (d) of sub-section (1) and punis ae • clause (i) of that sub-section sl)all be cognizable and non-bailable. · ( 6) A person shall not be prosecuted for any offence under this section except withthe previous sanction of the Commissioner. · Explanations- For the purposes ofthis section, the term "tax" shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly takenunder the provisions of this Act, theCentral Goods and Serviees Tax Act, the Integrated Goods and Services'fax Act, and cess levied underthe Goods and Services Tax ( Compensation to States) Act ·

133. ,(1) If any p?on engage? In e9nnection widl thecollection of stati&tics under seqtion or compilation or , compμt?risation thereof or. if any officer of State tax having .. access to Information specified undersub- sectiQn.Jl) of ?ction 150, or any person engaged in c<>nn%ti9;n,with provlsio11$ of seiytce on the common portal o? tlie agent of comnion, p<>rtal, wilfully discloses . any information or the law, shall be disposed of in accordance with the provisions of the existing law: aμd if any amount becomes recoverable as a result of such appeal, revision, review or reference, the same shall, unless recovered under the existing law, be recovered as an arrear of tax under this Act and amount so recovered shall not be admissible as input tax credit under this Act.: (b) Every proceeding of appeal, revision, review or reference relating to any output tax ·· l4ibility initiated whether before, onor after the appointed day under the existing law, shall be disposed of in accordance with the provisions of the existing lawi · and any amount found to be admissible to the claimant shall be refunded to him in cash in accordance with the provisions oftheevJ;fo:g?w --- and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (8) (a) Where in pursuance of an.assessment or adjudication proceedings instituted; whether before, on or . after the appointed day, under the existing law, any amount of tax, interest, fine or penalty becomes recoverable from the person, the same shall, unless recovered underthe ?ti?"' ... ---, \..,. - Act and the amount so recovered shall not be admissible as· Input fax credit under this Act. (b) Where in pursuance of an assessment or adjudication proceedings instituted, whether before, on or after the appointed day under the existing law, any amount of tax, interest, fine or penalty becomesrefundable to the taxable person, the same shall be refunded to him in cash under the said law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (9) (a) Where any return, furnished under the existing law, is revised after the appointed day and if, pursuant to such revision, any amount is found to be recoverable or. any amount of input tax credit. is found to be inadmissible, the same shall, unless recovered under the existing law, be recovered as ab arrear of tax underthis Act· and the amount so recovered shall not be admissiblqas input'tax credit under this .Act. ·

(9) Where any return, furnished under the existing law, is revised afterthe appointed day but within the time limit specified for such revision under the existing law and if, pursuant to such revision,. any amount is foundto be refundable or input tauredit is fou?d to be admissible to any taxable person, the same shall ?e refunded to him in. cash, underthe existing law, and the amount rejected, if any, shall not be admissible as input tax credit under this Act. (10) t1I) Save as otherwise provided - in this Chapter, the goods or services or both supplied on or after the appointed day in pursuance of a contract entered into prior to the appointed day shall be liable to tax under the provisions ofthisAct. (a} "Notwithstanding anything contained in section 12, no taxshall be payable on goods under this Act tothe ?;xJent the Jax was leviable on the said goods under the Mau;??,r Value Ad4? Tex Act, 2004. 32ofl994 --- of---- of i'.,\94 (b) Notwithstanding anything contained in section 13, no tax shall be payabl? on services under this Act to the extent the tax was 'ltviable on the said services under Chapter V of the Finance Act, 1994. · (c) Where tax was paid on any supply, both ttndei the Manipur Value Added T;;yA\ct, and under Chapter _)[. 9f tit,??-? l?, ··t!...?.· shall be leviable wider ?· . mis Act and the taxable person. sh.all 'be entitled to take credit of value added tax.Qr s.:ervicre taxpaid under the existing law to the extent of supplies made after the appointed day and such credit shallbe. calculated in such manner as may be prescribed. (12) Where any goods sent on approval basis, not.earlier than six months before the appointed day, are rejected or not. approved by the buyer and returned to the seller on or after the appointed day, no tax shall be payable thereon if such goods are returned within six months from the appointed day: Provided that the said period of si:x: months may, on sufficient ause being shown, 'be extended by the Commissioner for a further . ieriod nof exceeding two months: ? P.rgyided further that the tax. shall be. payable by the person re?1armng the goods if such goods are liaJ?μ: w tax under .this Act, and are returned afterthe period specified in this sub-sectlon;

Provided also that tax shall be payable by the person who has sent the goods on approval basis if such goods are liable to tax under this Act, and are not returned within the period specified in this sub-section. (13) Where a supplier has made any saleof gooils in respect of which tax was required . to be deducted at source under the Manipur Value Added Tu, 20CK and has also issued an invoice for the same before the appoinkd day. no deduction of tax at source under section51 sbaB be made by the deduct or under the said seclion wbc:R payment to thesaid supplier is m84le on or ala- the appointed day. Explanation;- · For the purposes of this Chapter, the - apmon "capital goods" shall havethe same meaning as assigned to it in the Manipur Value Added Tax, 2004.

CHAPTER XXI MISCELLANEOUS PROVISIONS 143. ( 1) A registered person {lter?after in this section referred to as the "principal") may, under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods,withoutpayment of tax,to a job worker for job work andfrom there subsequently send to another job worker and likewise, and shall,- ( a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, oftheir being sent out, to any of his place of business, without payment of tax; (b) supply such inputs, after completion of job · work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out fromthe place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be: Provided thatthe principal shall not supply the goods from the place of business of a job worker in terms of clause (b) unless the said principal declares tne place of business ofthe job-worker as his additional place of business except in a case- (i) where the job worker is registered under section 25; or (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. (2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal. (3} Wherethe inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordancewith clause (a) of sub-section ( 1) or are not supplied from the place of businessofthe job worker in accordance with clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been,suppliedby the principal to the job-worker on the day whenthesaid inputs were sent out. Job work procedure.

( 4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with clause (a) of sub-section (I) or are not snpplied from the place of business of the job worker in accordance with clause (b) of sub-section ( 1) within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job-worker on . the_ day when the said capital goods were sent out. (5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place· of business on payment of tax, if such job worker is registered, or by the principal, if the job worker - is not registered. · Explanation :'- For . the purpose of job work, input includes intermediate goods arising from any treatment or process carried . out on the inputs by the principal or the job worker. 144. Where any document- (i) is produced by any person.under this Act or any other law for the time being in force; or (ii) has been seized from the custody or control of any person under this Act or any other law for the time being in force; or (iii)· has been received from any place outside India in the course of any proceedings under this Act or any other law for the time being in force, and such document is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall,- · (a) unless the contrary is proved by such person, presume - (i) the truth of the contents of such document; (ii) that the signature and every other part of such document which purports to be in the handwriting of any particular person or which tlle court may reasonably assume to have been signed by, or to · be in the handwriting of, any particular person, is in that person's handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; Presumption as to documents in certain cases.

(b) admit the document in evidence not with standing that. it is not duly stamped, if suchdocuinent is otherwise admissible in evidence. 145. (1) Notwithstanding anything contained in any otherlaw for the time being in Iorce; -- (a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not); or (b} a facsimile copy of a document; or ( c) a statement contained in a document and included in a printed material produced by a computer, subject to such conditions as may be prescribed; or ( d) any Information stored electronically in any device or media, including any hard copies made of such information, shall bedeemed to be a document forthe purposes of this Act and the rulesmade thereunder andshallbe admissible in any proceedings thereunder, without further proof or production ofthe original, as evidence of any contents of the original or of any fact statedtherein of which direct evidence would be admissible. (2) In any proceedings under this Act and or the rules made thereunder, where it is desired to gi?e a statement in evidence by virtue of this section, a certificate, - (a) identifying the document containing the statement and describing the manner in which it was produced; (b} giving such particulars of any device involved in the production of thatdocument as may be appropriate for the purpose of showing thatthe document was produced by a computer, shall be evidence of any matter stated in the certificate and for the purposes. of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it. Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence. 146. The Government may, on the recommendations ofthe Council, Common Portal. notify the Common Goodsand Services Tax Electronic Portalfor facilitating registration, payment of Jax, furnishing of returns, computation and settlement. o( integrated tax, electronic way bill and for carrying out such 'other functions and for such purposes as may be prescribed.

of of of2003 147. The Government . may, on . the recommendations of the Council, notify certain supplies of goods as "deemed exports': where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreignexchange, if such goods are manufactured in

(1) Wh,oever: commits any of the rJollowing offences, namely:-· (a) . supplies any goods or s.efVic? o,r both without issue of any invoice, in violation.of the provisions of this Act, withthe intention to mile tax; (b) issues any invoice or bill without supply of goods orstM.ces or both irniolattotn,f?provisioll$ of this Act, or the rules made thereunder leading to wrongful availment or vtiliu.tion of inputtax credit or refund. cf tg; (c) avails inpuf tu?c??di.{usijig such invoice or bill referred to in clause (b ); (d) collects ;iny amount as. tax but, fails to pay the same to the Government beyon,d ;period of three months· from the date ·OJ). which such payment becomes due; ·· {e) ·ewdes tax, fraudulently avails input tax credit or fraudulently obtains refund and where such offence is not coveredunder clauses (a) to (d); Confiscation or penalty notto .interfere with other punishments. Punishmentfor certain offences 130 (f) falsiij??.or.§μbsti?tes.fina,w;ial records or produces fake accounts oi;,,documen?,?rfurnishes any false information with,an tntention-to evade-payment of tax due under this Act; (g) obstructs, or p? ?y officer in the discharge of hisduties underthis Act; (h) »acquires possession ·of, or in any,way. concerns himself in transporting,removing, depositing, keeping, concealing, • supplying, or purchasing or in any other: manner deals with, any goods which heknows or has reasons to believe are liable to confiscation -under this 'Act· or the rules made thereunder; ·:. r·? ':,: . (i) receives or is in ?y way concerned with the supply of, or in any other.manner dealswith any supply of services which -be knows or has reasons to believe are in contravention of any provisions of this Act or the 'rules made ?ereunder; {j) tampers with« destroys any materialevidence or documents; · (k) fails to supply h?y information . whichhe is required t?_supprilliider this Act or the rules made thereunder or (unless with a reasonable belief. the burden of proving which shallbe upon him, that theinformation supplied by him is; true) supplies false information; or (l) attempts to coinfuit; ijr.abets the commission of any of the offences. iW.entfoned in. clauses (a) to (k) of this section, shall be punishable- (i) in cases where.the' amount of-tax evaded or the amount of input tax credit wrongly availed or utilised ·or• the amount ofrefund wrongly taken exceedsfive hundred lakh rupees. with imprisonment for a term which may extend to five years ana with fine; .. (ii) in cases wherethe amount of tax evaded or theamount of input tax credit wrongly availed or utilised or the amount ofrefund wrongly taken exceeds two hundred lakh rupees but does not exceed fivehundred lakh rupees, with imprisonment for a term· whi?h may extend to three years anciwith fine; (iii) (iv) 131 in the case of any other offence where 'the amount oftax evaded or the·amount of input tax credit wrongly availed· or utilised or the amount of refund wrongly taken exceeds one hundred lakh rupees bu? 4oes not exceed two mndred lakh rupees; witl(miprisonment for a term ""'hich may extend· to' ope year and with fine; · · in cases where he commits or abets the commission of an offence ,specified in clause (f) or clause (g) or clause (j), he .shall be punishable with imprisenment' ··· for a term which may extend to six months or with fine or withboth. ' iofl974 (2) If any person convicted ofan offence underthis section is again convicted of an o:ffem:e under this section, then, he shall be punishable for the second and for. every subsequent offence with imprisonment for a term wi.h may extend to five years andwith fine: . (3) The imprisonment referred to in clauses (I), (ii) and (ill) ofsub-section (I) and sub-section (2).shall, in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the-Court, befor a term not less than six months. (4) Notwithstanding anything contained in 'the Code of Criminal Procedure, 1973, all offences under this Act, except the offences referred to in sub-section (5) shall be non-cognizable and bailable. · ( 5) Toe offences spec · e · · ·' -··?< ' or clause (b) or clause (c) or clause (d) of sub-section (1) and punis ae • clause (i) of that sub-section sl)all be cognizable and non-bailable. · ( 6) A person shall not be prosecuted for any offence under this section except withthe previous sanction of the Commissioner. · Explanations- For the purposes ofthis section, the term "tax" shall include the amount of tax evaded or the amount of input tax credit wrongly availed or utilised or refund wrongly takenunder the provisions of this Act, theCentral Goods and Serviees Tax Act, the Integrated Goods and Services'fax Act, and cess levied underthe Goods and Services Tax ( Compensation to States) Act · 132

,(1) If any p?on engage? In e9nnection widl thecollection of stati&tics under seqtion 151 or compilation or , compμt?risation thereof or. if any officer of State tax having .. access to Information specified undersub- sectiQn.Jl) of ?ction 150, or any person engaged in c<>nn%ti9;n,with provlsio11$ of seiytce on the common portal o? tlie agent of comnion, p<>rtal, wilfully discloses . any information or the contents of any return furnished underthis Act or rules made thereunder otherwise than in execution of his duties underthe said sections or for the p?oses ofthe prosecution ofan offence under this Act or under any other Act for the time being in force. he smill be punishable with imprisonment for a term which may extend to six momhs or witMine which may extend to twenty five thousand rupees, or with both. (2) Anyperson- (a) whqjsaGove;mmentservant shall not be prosecuted f?r any oifcnFe under this section except with the previous sanction ofthe Government; (b). who is not a Govemment servant shall not be prosecmqi1? any offence under this section except withthe previous sanction ofthe Commissioner.

No court shall take cognit.a,nce of any offence pmtishable under this Act or the rules made thereunder except with the previous . sanction of the Conunissiotier, attd no court inferior to that of aMagisttate,of the First Class, shall try,anysuch offence.

In any prosecution for an offence under this"Act which requires a culpable mental state on the .. pllrl of the accused, the court shall presume th! existence ?f suchmentalstate .butit shall be a defence for the accused to prove the fact thathe bad no such mental state with respect· to the act. charged as an offence in that prosecution. Explanation:- FOIJhe p? ?·? secnon,« (i) the expre?ion ·c?pabfe mental state" includes intention, motive, knowledge ofa fact, and beliefin, or reason to believe, a fact; (ii) a fact is said to be proved only wlten the court believes it •· to exist beyond reasonable doubt ·and·. not merely when its existence is established by a preponderance of · probability.

A statement made and signed by a person ob appearance in response to any sumtnons issued under section 70 during the course of•y ,inquiry or proceedings under this Act shall be relevant, for the purpose of proving, in.any prosecution for an offence underthis A,ct, the truth of the factswhich it contains,- Liability ofofficers and certain other persons. Cogni7.ance of offences. Presumption of culpable mental state. Relevancy of statements under certain dr?umstances. 133 (a) when the person who made the statement is dead or cannot be found, or is incapable of giving evidence, ,.or ;is kept out of the. way by the adverse party, or whose presence cannot be obtained without an amount of delay or expense which, under the circumstances of. the case, the court considers unteasoriable; or . O . ,;;.·. justice. (b) when the person ·?ho mad?' the statement is examined as a witness in the case before the court and the court is of the opinion that, having regard to the circumstances of the case, the statement should. be admitted in evidence in the interest of

· ·. (1) Where an offence committed by a person under this Act Offences by Companies, is a company, every person who, at thetime the offence was committed was in charge of, and was responsible to, the company for the conduct of business of the company, as well as the company, shall be deemed to be guilty of the offence and shall beliable to be proceeded against and punished accordingly. (2) Notwithstanding anything contained in sub-section (I), where an offence · underthis Act has been committed by a company and itis proved thatthe offence has been committed withthe consent or connivance of, or is attributable to any negligence on thepart of, any director, manager, secretary or other officerofthe company, such director, manager, secretary or otherofficer shall also be deemed to be 'gllilty ofthat offence and shall be liable to be proceeded against and punished accordingly. (3) Where an offence underthis.Acthas been committed by a taxable personbeing a partnership firm ora Limited Liability Partnership ora. Hindu undivid? family or a trust, the partner or karta or managing tfUstee shall be deemed to be guilty of that offen? and shallbeliable to be proceeded against and punished accordingly and the provisions ofsub-section (2) shall mutatis mutandis apply to such persons. · (4) Nothing contained in this section shall render any such person liable to any punishment provided in this Act, if he proves that the offence was committed·withouthis knowledge or thathehad exercisedall duediligence to prevent the commission ofsuch offence. · Explanation:-For the purposes ofthis section,- 2 of 1974 134 (i) "company" means a body corporate and includes a firm or other association of individuals; and .(ii) "dlrector'; in relation, to a firm, means'a partner in the firm. ·

(1) Any offence under this _Acfrnay{either before or after · the institution of prosecution, be compounded. by the Commissioner on payment, by the. person .accused of the offence,' to the Central Government or the State Government, as the case may be, 'of such compounding amount in such manner as may be prescribed: Provided that nothing contained in this section shall apply to - (a) a person who has been allowed to compound once. in respect of any ofthe offences specified in clauses(a) to (f) of sub-section (1) of section 132 and, the offences specified in clause (1) which are relatable to offences specified in clauses (a) to (f) of the said sub-section; (b) a person who has been allowed to coinpound once in respect of any offence, other than those in clause (a), under this Act or under the provisions of any State Goods and Services Tax Act or the Central Goods and Services Tax Act or the Union Territory Goods and Services Tax. Ac,t or the Integrated Goods and Services Tax Act in. respect of supplies of value exceeding one crore rupees; (c) a person who has beenaccused of committing an offence under this Act·· which .is also an offence under any other law for the time being in force; (9:) a person who. has been convicted for an offence · under this Act,,by a court; (e) .?tperson who' has been 'accused of committing ·a:\i offence specified In clause (g) or clause (j) or '.'d,ause(k) of sub-section (1) of section 132; and (f) any other .class of persons or offences as may be prescribed: Provided further, that any compounding allowed under the provisions of this section shall. not affect the proceedings, if any, institutedunder any other, law: Provided also that compounding shall. be. allowed only after making payment of tax, interest and penalty involved in such offences. Compounding of offences. 135 (2) The amount for compounding of offences under this section shall be such as fll&Y be prescribed. subject to the minimum amount not being less than ten thousand rupees or fifty per cent ofthe tax involved. whichever is higher, and th? rnaxtmum amount· not being less than thirty thousand rupees or ortehundred and fifty per cent of the tax. whichever is higl'ier:" (3) On payment of such compounding amount as may be determined by the Commissioner. no further proceedings shall be initiated und.fL,r this Act against the accused person in respect of the same offenceand any criminal proceedings. if already initiated in respect of thesaid offence. shall stand abate&. · 136 CHAPTER XX TRANSITIONAL PROVISIONS

( 1) On and from the appointed day, every person registered Migration of existing under any of the existing laws · and having a valid taxpayers. Permanent Account Number shall be issued a certificate . of registration on provisional basis, subject to such conditions and in such form and manner as may be prescribed and, unless replaced by a final certificate of registration under sub-section (2), shall be liable to be cancelled if the conditions so prescribed are not complied with. (2) The final certificate of registration shall be granted in such formand manner and subject to such conditions as may be prescribed. {3) The certificate of registration issued to a person under sub-section (1) shallbe deemed to have not been issued if the said registration is cancelled in pursuance of an application filed by such person that he was not liable to registration under section 22 or section

(1) A registered person, other than a person opting to pay tax under section 10, shallbe entitled to take, in his electronic credit ledger credit of the amount ofValue Added Tax, and Entry Tax, if any, carried forward in the return relating to the period ending with the day immediately preceding the appointed day, furnished by himunder the existing law, not later than ninety days after thesaid day, in such manneras may he prescribed: Providedthatthe registered person shall not be allowed to take credit in the following circumstances, namely:- (i) where the said amount of credit is not admissible as input tax credit under this Act; or (ii) where he has not furnished allthe returns required under the existing law forthe period of six months immediately preceding the appointed date or (iii) where thesaid amount ofcredit relates to goods sold under notification No. 5/6/2002-FD(TAX) Pt-1 anddtd. 08/06/2016 claiming refund of value added tax paid thereon (whereverapplicable): Transitional arrangements for input tax credit. 74ofl956 137 Provided further that so much of thesaid credit as is attributable to any claim related to section 3, sub-section (3) ofsection 5, section 6, section 6A or sub-section (8) .of.section 8of the CentralSales Tax Act, 1956 that is not substantiated in the manner, and within the period, prescribed in. rule 12 of the C:;:?!Jtral Sales Tax {Registration and Turnover) Rules, 1957 shall not be e1igible to be credited to the electronic credit ledger: Provided also that an amount equivalent to the credit specified in the second proviso shall be refunded underthe existing law when the said claims are substantiated in the manner prescribed in rule 12 of theCentralSales Tax (Registration and Turnover) Rules,

(1) Where any inputs received at a place of business had been despatched as such or despatched after being partially processed to a job worker for further processing, testing, repair, reconditioning or any other purpose in accordancewith the provisions of existing law prior to the appointed day and such inputs are returned to the said place on or after the appointed day, no tax shall be payable if such inputs, after completion ofthe job work or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended· by the Commissioner for a further period not exceeding two months: · Provided further that if such inputs are not returned within a period of six months or the extended period from the appointed day, the input tax creditshall be liable to be recovered in accordancewith the provisions of clause (a) of sub-section (S)_ofsection

Transitional provisions relating to job work. 140 (2) Where any semi-finished goods had been despatched from any place of business to any other premises for carrying out certain manufacturing processes in accordance with the provisions of existing law prior to the appointed '1ay,-and such goods (hereafter in this sub-section referred to .. as "the said goods") are returned to the said place on or after the appointed day, no tax shall be payable if the said goods;' after undergoing manufacturing processes or otherwise, are returned to the said place within six months from the appointed day: Provided that the period of six months may, on sufficient cause being shown, be extended by the Commissioner for a further period not exceeding two months: · Provided further that ifthe said goods are not returned within a period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause ( a) ofsub-section (8) of section 142: Provided also that the person despatching the goods may, in accordance with the provisions of the existing law, transfer the said goods to the premises of any registered person for the purpose of supplying therefrom on payment of tax in India or without payment of tax for exports within six months or the extended period, as the case may be, from the appointed day. (3) Where any goods had been despatched from the place of business without payment of tax for carrying out tests or any other process, to any other premises, whether registered or not, in accordance with the provisions of existing law prior to the appointed day and such goods, are returned to the said place ofbusiness on or after the appointed day, no tax shall be payable if the said goods, after undergoing tests or any other process, are returned to such place within six months from the appointed day: Provided that the period of six months may, on sufficient · cause being shown, be extended by the Commissioner for a further period not exceeding two months: Provided further that if the said goods are not returned within the period specified in this sub-section, the input tax credit shall be liable to be recovered in accordance with the provisions of clause (a) ofsub-section (8) of section 142: • Provided also that the person despatching the goods may, in accordance with the provisions Of the existing law, transfer the said goods from the said other premises on payment of tax in India or without payment of tax for exports within six months or the extended period, as the case may be, from the appointed day. 141 (4) The tax under sub-sections (1), (2) and (3}ihall not be payable only ifthe person despatching the goods and the job worker declarethe details ofthe inputs or goods held in stock by the job worker on behalf ofthe said person on the appointed day in su?hJorm and manner and within such time as may be prescribed.

( 1) A registered person {lter?after in this section referred to as the "principal") may, under intimation and subject to such conditions as may be prescribed, send any inputs or capital goods,withoutpayment of tax,to a job worker for job work andfrom there subsequently send to another job worker and likewise, and shall,- ( a) bring back inputs, after completion of job work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, oftheir being sent out, to any of his place of business, without payment of tax; (b) supply such inputs, after completion of job · work or otherwise, or capital goods, other than moulds and dies, jigs and fixtures, or tools, within one year and three years, respectively, of their being sent out fromthe place of business of a job worker on payment of tax within India, or with or without payment of tax for export, as the case may be: Provided thatthe principal shall not supply the goods from the place of business of a job worker in terms of clause (b) unless the said principal declares tne place of business ofthe job-worker as his additional place of business except in a case- (i) where the job worker is registered under section 25; or (ii) where the principal is engaged in the supply of such goods as may be notified by the Commissioner. (2) The responsibility for keeping proper accounts for the inputs or capital goods shall lie with the principal. (3} Wherethe inputs sent for job work are not received back by the principal after completion of job work or otherwise in accordancewith clause (a) of sub-section ( 1) or are not supplied from the place of businessofthe job worker in accordance with clause (b) of sub-section (1) within a period of one year of their being sent out, it shall be deemed that such inputs had been,suppliedby the principal to the job-worker on the day whenthesaid inputs were sent out. Job work procedure. 147 ( 4) Where the capital goods, other than moulds and dies, jigs and fixtures, or tools, sent for job work are not received back by the principal in accordance with clause (a) of sub-section (I) or are not snpplied from the place of business of the job worker in accordance with clause (b) of sub-section ( 1) within a period of three years of their being sent out, it shall be deemed that such capital goods had been supplied by the principal to the job-worker on . the_ day when the said capital goods were sent out. (5) Notwithstanding anything contained in sub-sections (1) and (2), any waste and scrap generated during the job work may be supplied by the job worker directly from his place· of business on payment of tax, if such job worker is registered, or by the principal, if the job worker - is not registered. · Explanation :'- For . the purpose of job work, input includes intermediate goods arising from any treatment or process carried . out on the inputs by the principal or the job worker.

Where any document- (i) is produced by any person.under this Act or any other law for the time being in force; or (ii) has been seized from the custody or control of any person under this Act or any other law for the time being in force; or (iii)· has been received from any place outside India in the course of any proceedings under this Act or any other law for the time being in force, and such document is tendered by the prosecution in evidence against him or any other person who is tried jointly with him, the court shall,- · (a) unless the contrary is proved by such person, presume - (i) the truth of the contents of such document; (ii) that the signature and every other part of such document which purports to be in the handwriting of any particular person or which tlle court may reasonably assume to have been signed by, or to · be in the handwriting of, any particular person, is in that person's handwriting, and in the case of a document executed or attested, that it was executed or attested by the person by whom it purports to have been so executed or attested; Presumption as to documents in certain cases. 148 (b) admit the document in evidence not with standing that. it is not duly stamped, if suchdocuinent is otherwise admissible in evidence.

(1) Notwithstanding anything contained in any otherlaw for the time being in Iorce; -- (a) a micro film of a document or the reproduction of the image or images embodied in such micro film (whether enlarged or not); or (b} a facsimile copy of a document; or ( c) a statement contained in a document and included in a printed material produced by a computer, subject to such conditions as may be prescribed; or ( d) any Information stored electronically in any device or media, including any hard copies made of such information, shall bedeemed to be a document forthe purposes of this Act and the rulesmade thereunder andshallbe admissible in any proceedings thereunder, without further proof or production ofthe original, as evidence of any contents of the original or of any fact statedtherein of which direct evidence would be admissible. (2) In any proceedings under this Act and or the rules made thereunder, where it is desired to gi?e a statement in evidence by virtue of this section, a certificate, - (a) identifying the document containing the statement and describing the manner in which it was produced; (b} giving such particulars of any device involved in the production of thatdocument as may be appropriate for the purpose of showing thatthe document was produced by a computer, shall be evidence of any matter stated in the certificate and for the purposes. of this sub-section it shall be sufficient for a matter to be stated to the best of the knowledge and belief of the person stating it. Admissibility of micro films, facsimile copies of documents and computer printouts as documents and as evidence.

The Government may, on the recommendations ofthe Council, Common Portal. notify the Common Goodsand Services Tax Electronic Portalfor facilitating registration, payment of Jax, furnishing of returns, computation and settlement. o( integrated tax, electronic way bill and for carrying out such 'other functions and for such purposes as may be prescribed. 43 of 1961 2 of 1934 36 of2003 149

The Government . may, on . the recommendations of the Council, notify certain supplies of goods as "deemed exports': where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreignexchange, if such goods are manufactured in India.

The Government may, on the recommendations of the Council, and subject to such conditions and safeguards as may be prescribed, notify certain classes of taxable persons, and the · special procedures to be. followed by such taxable persons including thoseWith regard to registration, furnishing of return, payment of tax and administration of such taxable persons. 149. (1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record ofcompliance with the provisions of this Act (2) The goods and services tax compliance rating score may be determined on thebasisof such parameters as may be prescribed. (3} The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed. 150. (1) Any person, being- (a) a taxable person; or (b) a local authority or other publicbody or association; or ( c) any authority of the StateGovernment responsible forthecollection of value added tax or sales tax or State excise duty or an authority of the Central Government responsible for thecollectionof excise duty or customs duty; or ( d) an income tax authority appointed under the provisions ofthe Income-tax Act, 1961; or ( e) a banking company Withinthe meqning ofclause (a) of section 45A of the Reserve Bank of India Act, 1934;or (f) -a State Electricity Board or an electricity distribution or transmission licensee under the Electricity Act, 2003, or any other · entity entrustedWith such functions by the Central Government· or the State Government; or Deemed Exports. Special Procedure for certain processes. Goods and services tax compliance rating. Obligation to furnish information return.

of (g) (h) 18of2013 (i) 59ofl988 (j) 30of2013 42of1956 of ofl934 of2013 the Registrar or Sub- Registrar appointed under section ofthe Registration Act, 1908; or a Registrar within the meaning of the Companies Act, 2013; or the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988; or the Collector referred to in clause ( c) of section of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or (k) the recognised stock exchange referred to in clause (0 of section ofthe Securities Contracts (Regulation) Act, 1956; or (l) a depository referred to in clause (e) of sub-section ( 1) of section of the Depositories Act, 1996; or (m) an officer ofthe Reserve Bank oflndia as constituted under section of the Reserve Bank of India Act, 1934;or (n) the Goods and Services Tax Network, a company registered under the Companies Act, ; or (o) a person to whom a Unique Identity Number has been granted under sub-section (9) of section 25;or (p) any other person as may be specified, on the recommendations of the Council, by the Government, who is responsible for maintaining record of registration or statement of accounts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property under any law for the time being in force, shall. furnish an information. return of the same in respect ofsuch periods, within such time, in such form and manner and to such authority or agency as may be prescribed. (2) Where the Commissioner, or an officer authorised by him in this behalf, considers that the information furnished in the information return is defective, he may intimate the defect to the person who has furnished such information return and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the said authority may allow and if the defect is not rectified within thesaid period of thirty days or the further period so allowed, then, notwithstanding anything contained in any other provisions of this Act, such information return shall be treated as not furnished and. the provisions of this Act shall apply.

(3) Where a person who is required to furnish information return has not furnished the same within the time specified in sub-section (1) or sub-section (2), the said authority may serve upon him a notice requiring furnishing ofsuch information return within a period not exceeding ninety da,s from,the dateof service ofthe notice. and such-person shallfurnishtheinformation return. 151. (1) The Commissioner may, ifhe considers that itis necessary so to do, by notification, directthat statistics may becollected relating to any matter dealt with,. by or in connection withthis Act. (2) Upon such notification being issued, the Commission?. or any person authorised by him in this behalf, may call upon the concerned persons to furnish such information or returns, in such formand manneras may be prescribed, relating to an.y matter in respect of which statisticsis to be collected. · 152. (1) No information of any individual return or part thereof with respect to any matter given for the purposes of section shall, without the previous consent in writing of theconcerned person or his· authorised representative, be published in such manner so as to enable such particulars to be identified as referring to a particular person and no suchinformation shallbe used for the purpose of any proceedings underthis Act. (2} Except for the purposes of prosecution under this Act, or any other Act for the time being in force, no person who is not engaged in the collection of statistics under this Act or compilation or computerization thereof for the purposes of this Act, shall be permitted ? see or have access to.any information or any individual return referred to in section 151. (3) Nothing in this section shall apply to the publication of any information relating to a classof taxable persons or class of transactions, if in the opinion ofthe Commissioner, it is desirable in the ;ublic interest to publish suchinformation. 153. Any officer not below the rank of Assistant Commissioner may, having regard to the nature and. complexity of the case and the interest of revenue, take assistance of any expert at any stage of scrutiny,inquiry, investigation or any other. proceedings beforehim. Power to collect statistics Bar on disclosure of infurmation required under section 151. Taking · t w:r fmau expert

45ofl860 of 154. TheCommissioner ?ran officer authorised by him may take samples of goods from the possession of any taxable person, where he considers it necessary, and provide a receipt for any samples so taken. 155. ,r\'here any person claims thaf lieis eligible far input tax credit under this Act, the burden of proving such claim shall lie on such person. 156. All persons discharging functions under this Act shall be deemed to be public servants within the meaning of section of the

(1) Every registered person may be assigned a goods and services tax compliance rating score by the Government based on his record ofcompliance with the provisions of this Act (2) The goods and services tax compliance rating score may be determined on thebasisof such parameters as may be prescribed. (3} The goods and services tax compliance rating score may be updated at periodic intervals and intimated to the registered person and also placed in the public domain in such manner as may be prescribed.

(1) Any person, being- (a) a taxable person; or (b) a local authority or other publicbody or association; or ( c) any authority of the StateGovernment responsible forthecollection of value added tax or sales tax or State excise duty or an authority of the Central Government responsible for thecollectionof excise duty or customs duty; or ( d) an income tax authority appointed under the provisions ofthe Income-tax Act, 1961; or ( e) a banking company Withinthe meqning ofclause (a) of section 45A of the Reserve Bank of India Act, 1934;or (f) -a State Electricity Board or an electricity distribution or transmission licensee under the Electricity Act, 2003, or any other · entity entrustedWith such functions by the Central Government· or the State Government; or Deemed Exports. Special Procedure for certain processes. Goods and services tax compliance rating. Obligation to furnish information return. 16 of 1908 (g) (h) 18of2013 (i) 59ofl988 (j) 30of2013 42of1956 22 of 1996 2 ofl934 18 of2013 150 the Registrar or Sub- Registrar appointed under section 6 ofthe Registration Act, 1908; or a Registrar within the meaning of the Companies Act, 2013; or the registering authority empowered to register motor vehicles under the Motor Vehicles Act, 1988; or the Collector referred to in clause ( c) of section 3 of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013; or (k) the recognised stock exchange referred to in clause (0 of section 2 ofthe Securities Contracts (Regulation) Act, 1956; or (l) a depository referred to in clause (e) of sub-section ( 1) of section 2 of the Depositories Act, 1996; or (m) an officer ofthe Reserve Bank oflndia as constituted under section 3 of the Reserve Bank of India Act, 1934;or (n) the Goods and Services Tax Network, a company registered under the Companies Act, 2013 ; or (o) a person to whom a Unique Identity Number has been granted under sub-section (9) of section 25;or (p) any other person as may be specified, on the recommendations of the Council, by the Government, who is responsible for maintaining record of registration or statement of accounts or any periodic return or document containing details of payment of tax and other details of transaction of goods or services or both or transactions related to a bank account or consumption of electricity or transaction of purchase, sale or exchange of goods or property or right or interest in a property under any law for the time being in force, shall. furnish an information. return of the same in respect ofsuch periods, within such time, in such form and manner and to such authority or agency as may be prescribed. (2) Where the Commissioner, or an officer authorised by him in this behalf, considers that the information furnished in the information return is defective, he may intimate the defect to the person who has furnished such information return and give him an opportunity of rectifying the defect within a period of thirty days from the date of such intimation or within such further period which, on an application made in this behalf, the said authority may allow and if the defect is not rectified within thesaid period of thirty days or the further period so allowed, then, notwithstanding anything contained in any other provisions of this Act, such information return shall be treated as not furnished and. the provisions of this Act shall apply. 151 (3) Where a person who is required to furnish information return has not furnished the same within the time specified in sub-section (1) or sub-section (2), the said authority may serve upon him a notice requiring furnishing ofsuch information return within a period not exceeding ninety da,s from,the dateof service ofthe notice. and such-person shallfurnishtheinformation return.

(1) The Commissioner may, ifhe considers that itis necessary so to do, by notification, directthat statistics may becollected relating to any matter dealt with,. by or in connection withthis Act. (2) Upon such notification being issued, the Commission?. or any person authorised by him in this behalf, may call upon the concerned persons to furnish such information or returns, in such formand manneras may be prescribed, relating to an.y matter in respect of which statisticsis to be collected. ·

(1) No information of any individual return or part thereof with respect to any matter given for the purposes of section 151 shall, without the previous consent in writing of theconcerned person or his· authorised representative, be published in such manner so as to enable such particulars to be identified as referring to a particular person and no suchinformation shallbe used for the purpose of any proceedings underthis Act. (2} Except for the purposes of prosecution under this Act, or any other Act for the time being in force, no person who is not engaged in the collection of statistics under this Act or compilation or computerization thereof for the purposes of this Act, shall be permitted ? see or have access to.any information or any individual return referred to in section

Any officer not below the rank of Assistant Commissioner may, having regard to the nature and. complexity of the case and the interest of revenue, take assistance of any expert at any stage of scrutiny,inquiry, investigation or any other. proceedings beforehim. Power to collect statistics Bar on disclosure of infurmation required under section

TheCommissioner ?ran officer authorised by him may take samples of goods from the possession of any taxable person, where he considers it necessary, and provide a receipt for any samples so taken.

,r\'here any person claims thaf lieis eligible far input tax credit under this Act, the burden of proving such claim shall lie on such person.

All persons discharging functions under this Act shall be deemed to be public servants within the meaning of section 21 of the Indian Penal Code.

(1) No suit, prosecution or other legalproceedings shall lie against the President, State President, Members, officers or other employees of the Appellate Tribunal or any other person authorised by the said Appellate Tribunal for anything which is in good faithdone or intended to be done under this Act or therules made thereunder, (2) No suit, prosecution or other legal proceedings shall lie against • any officer appointed or authorised under this Act for anything which is done or intended to be done in good faith under this Act or the rules made thereunder. 158. (1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this A,ct (other than proceedings before a criminal court), or in any record of any proceedings under this Act shall, save as provided in sub-section {3), not be disclosed. (2) Notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall, save · as otherwise provided in sub-section (3 ), require any officer appointed or authorised under this Act to produce before it or to give evidence before itin respect of particulars referred to in sub-section (1). Power to take samples. Burden of Proof. Persons deemed to be public servants. Protection of action taken under this Act Disclosure of information by a public servant of1860 49of (3) Nothing contained in thissection shall apply to the disclosure of,- (a) any particulars in respect of any statement, return, accounts, documents. evidence, affidavit or deposition; for the· purp9se of any prosecution under the Indian. Penal Code or the Prevention of Corruption Act, 1988, or any other law for the time being in force; or

(b) any particulars to the Central Government or the State Government or to any person acting in the implementation of-this Act, for the purposes of carrying out the objects of this Act; or (c) any particulars when such disclosure is occasioned by the lawful exercise under this Act of any process for the service of any notice or recovery of any demandj or (d) any particulars to a civil court in any suit or proceedings, to whichthe Government . or any authority underthis Actis a party, . which relates to any matter arising out of any proceedings under this Act or under any other lawfor the time being in force authorising any such authority to exercise any powers thereunder; or ( e) any particulars to any officer appointed for the purpose of audit of tax receipts or refundsofthe tax imposed by this Act; or (f) any particulars •where such· particulars are relevant for the purposes of any inquiry into theconduct of. any officer appointed or authorisedunder this Act, to any person or persons appointed asan inquiry officer under any lawfor the time being in force; or (g) any such particulars to an officer of the Central Government or of any State Government, as may be necessary forthe purpose of enabling <that Government to levy or realise any tax or duty; or (h) any particulars when such disclosure is occasioned by thelawful exercise· by a public servant or any other statutory authority, of his or its powers under any lawforthe time being in force; or (i) any particulars relevant to any inquiry into a charge of misconduct in connection with any proceedings under thfs . Act against a practising advocate, a tax practitioner..,· a practising cost accountant, a practising. chartered accountant, a practising company secretary to the. authority empowered to take disciplinary action against the members practising the profession of a legal practitioner, a cost accountant, a chartered accountant or a company secretary. as the case may be; or

(j) any particulars to any agency appeinted for the purposes of data entry on any automated system or for the purpose of operating, upgrading or maintaining any automated system where such agency is contractually bound notto use or disclose such particulars except forthe aforesaid purposes; or (k) any such particulars to an officer of the Government as may be necessary for the purposes of any other law for the time being in force; and (l) any information relating to any class of taxable persons or class of transactions for publication, if, in the opinion of the Commissioner, it is desirable in the public interest, to publish such information. 159. (1) If the Commissioner, or any other officer authorised by him in this behalf, is ofthe opinion that it is necessary or expedient in the public interest to publish the name of any person and any other particulars relating to any proceedings or prosecution under this Act tnrespect of such person, it may cause to be published such name and particulars in such manner as it thinks fit (2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the Appellate Authority under section has expired without an appeal having been presented or the appeal, if presented, has been disposed of. Explanation:- In the case of firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasures or managers of the company, or the members ofthe association, as the case may be, may also be published if, in the.opinion of the Commissioner, or any other officer authorised by him .in this behalf, circumstances of the case justify it. 160. (1) No assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings done, a\:cepted, made, issued, initiated, or purported to have been done, accepted, made, issued, initiated in pursuance of any of the provisions of thts Act shall be invalid or deemed to be invalid merelyby reason of any mistake, defect or omission therein, if such assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings are in substance and effect in conformity with or according to the intents, purposes and requirements of this Act or any existing law. Publication of information respecting persons in certain cases. Assessment proceedings, etc. not to be invalid on certain grounds.

{2) The service of any notice, order or communication shall not be called in question, if the notice, order or communication, as the case may be, has already been acted upon by the person to whom it is issued or where such service has not been called in question a.tor in the earlier proceedings commenced, continued or finalised · pursuant to such notice, order or communication. 161. Without prejudice to· the provisions of section 160, and Rectificationof errors notwithstanding anything contained in any other provisions of apparent fromrecord. this Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document; may rectify any error which· is apparent on the face of record in suchdecision or order or notice or. certificate or any other document, either on its own motion or where such error is brought to itsnotice by any officer appointed underthis Act or an officer appointed under the Central.Goods and Services Tax Act or by the affected person within a period ofthreemonths from thedate of issue of suchdecision or order or notice or certificate or any other document, as the case may be: Providedthat no suchrectificationshall be done after a period of six months fromthe date of issue of such decision or order or notice or certificate or any otherdocument: Provided further that the said period of six monthsshall not apply in such cases where therectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission: Provided also . thatwhere such· rectification adversely affects any person, the principles of natural justice shall be followed by the authority carrying out such rectification. 162. Save as provided insections and 118, no civil court shall Baron jurisdiction of have jurisdiction to deal with or decide any question arising civil courts. from or relating to anything done or purported to bedone ' under this

(1) All particulars contained in any statement made, return furnished or accounts or documents produced in accordance with this Act, or in any record of evidence given in the course of any proceedings under this A,ct (other than proceedings before a criminal court), or in any record of any proceedings under this Act shall, save as provided in sub-section {3), not be disclosed. (2) Notwithstanding anything contained in the Indian Evidence Act, 1872, no court shall, save · as otherwise provided in sub-section (3 ), require any officer appointed or authorised under this Act to produce before it or to give evidence before itin respect of particulars referred to in sub-section (1). Power to take samples. Burden of Proof. Persons deemed to be public servants. Protection of action taken under this Act Disclosure of information by a public servant 45 of1860 49of 1988 (3) Nothing contained in thissection shall apply to the disclosure of,- (a) any particulars in respect of any statement, return, accounts, documents. evidence, affidavit or deposition; for the· purp9se of any prosecution under the Indian. Penal Code or the Prevention of Corruption Act, 1988, or any other law for the time being in force; or 153 (b) any particulars to the Central Government or the State Government or to any person acting in the implementation of-this Act, for the purposes of carrying out the objects of this Act; or (c) any particulars when such disclosure is occasioned by the lawful exercise under this Act of any process for the service of any notice or recovery of any demandj or (d) any particulars to a civil court in any suit or proceedings, to whichthe Government . or any authority underthis Actis a party, . which relates to any matter arising out of any proceedings under this Act or under any other lawfor the time being in force authorising any such authority to exercise any powers thereunder; or ( e) any particulars to any officer appointed for the purpose of audit of tax receipts or refundsofthe tax imposed by this Act; or (f) any particulars •where such· particulars are relevant for the purposes of any inquiry into theconduct of. any officer appointed or authorisedunder this Act, to any person or persons appointed asan inquiry officer under any lawfor the time being in force; or (g) any such particulars to an officer of the Central Government or of any State Government, as may be necessary forthe purpose of enabling <that Government to levy or realise any tax or duty; or (h) any particulars when such disclosure is occasioned by thelawful exercise· by a public servant or any other statutory authority, of his or its powers under any lawforthe time being in force; or (i) any particulars relevant to any inquiry into a charge of misconduct in connection with any proceedings under thfs . Act against a practising advocate, a tax practitioner..,· a practising cost accountant, a practising. chartered accountant, a practising company secretary to the. authority empowered to take disciplinary action against the members practising the profession of a legal practitioner, a cost accountant, a chartered accountant or a company secretary. as the case may be; or 154 (j) any particulars to any agency appeinted for the purposes of data entry on any automated system or for the purpose of operating, upgrading or maintaining any automated system where such agency is contractually bound notto use or disclose such particulars except forthe aforesaid purposes; or (k) any such particulars to an officer of the Government as may be necessary for the purposes of any other law for the time being in force; and (l) any information relating to any class of taxable persons or class of transactions for publication, if, in the opinion of the Commissioner, it is desirable in the public interest, to publish such information.

(1) If the Commissioner, or any other officer authorised by him in this behalf, is ofthe opinion that it is necessary or expedient in the public interest to publish the name of any person and any other particulars relating to any proceedings or prosecution under this Act tnrespect of such person, it may cause to be published such name and particulars in such manner as it thinks fit (2) No publication under this section shall be made in relation to any penalty imposed under this Act until the time for presenting an appeal to the Appellate Authority under section 107 has expired without an appeal having been presented or the appeal, if presented, has been disposed of. Explanation:- In the case of firm, company or other association of persons, the names of the partners of the firm, directors, managing agents, secretaries and treasures or managers of the company, or the members ofthe association, as the case may be, may also be published if, in the.opinion of the Commissioner, or any other officer authorised by him .in this behalf, circumstances of the case justify it.

(1) No assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings done, a\:cepted, made, issued, initiated, or purported to have been done, accepted, made, issued, initiated in pursuance of any of the provisions of thts Act shall be invalid or deemed to be invalid merelyby reason of any mistake, defect or omission therein, if such assessment, re-assessment, adjudication, review, revision, appeal, rectification, notice, summons or other proceedings are in substance and effect in conformity with or according to the intents, purposes and requirements of this Act or any existing law. Publication of information respecting persons in certain cases. Assessment proceedings, etc. not to be invalid on certain grounds. 155 {2) The service of any notice, order or communication shall not be called in question, if the notice, order or communication, as the case may be, has already been acted upon by the person to whom it is issued or where such service has not been called in question a.tor in the earlier proceedings commenced, continued or finalised · pursuant to such notice, order or communication.

Without prejudice to· the provisions of section 160, and Rectificationof errors notwithstanding anything contained in any other provisions of apparent fromrecord. this Act, any authority, who has passed or issued any decision or order or notice or certificate or any other document; may rectify any error which· is apparent on the face of record in suchdecision or order or notice or. certificate or any other document, either on its own motion or where such error is brought to itsnotice by any officer appointed underthis Act or an officer appointed under the Central.Goods and Services Tax Act or by the affected person within a period ofthreemonths from thedate of issue of suchdecision or order or notice or certificate or any other document, as the case may be: Providedthat no suchrectificationshall be done after a period of six months fromthe date of issue of such decision or order or notice or certificate or any otherdocument: Provided further that the said period of six monthsshall not apply in such cases where therectification is purely in the nature of correction of a clerical or arithmetical error, arising from any accidental slip or omission: Provided also . thatwhere such· rectification adversely affects any person, the principles of natural justice shall be followed by the authority carrying out such rectification.

Save as provided insections 117 and 118, no civil court shall Baron jurisdiction of have jurisdiction to deal with or decide any question arising civil courts. from or relating to anything done or purported to bedone ' under this Act.

Wherever a copy of any order or document is to be provided to anyperson onan application made by him for that purpose, there shall be paid such fee as may be prescribed. • 164. (1) The Government may, on the recommendations ofthe Council, by notification, make rules for carrying out the ' provisions ofthis Act. Levy of fee. Power of Government to makerules.

(2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any ofthe matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be madfby rules. (3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force. (4) Any rules made under sub-section(!) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees. 165. The Government may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act. .. Every rule made by the Government, every regulation made by the Government and every notification issued by the Government under this Act, shall be laid, as soon as may be after it is made or issued, before the State Legislature, while it i§ in session, for a total period ·of thirty days which. may ,, be comprised in one session or • in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the State Legislature agrees in making any modification in the rule or regulation or in the notification, as the case may be, or the State Legislature agrees that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, thatany such modification or annulm?nt shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be. · 167. The Commissioner may, by notification, direct that subject to such conditions, if any, as may be specified in the notification, any· power exercisable by any authority or officer under this Act may be exercisable also by another authority or officer· as may be specified in such notification. Power to make regulations. Laying of rules, regulations and notifications. Delegation of powe

168. The Commissioner may, ifhe considers it necessary or expedient· so. to dofor the purpose of uniformity in the implementation of this. Act, issue such orders, instructions or direcuons.to.the .• State tax officers as it may deem ·fit, and thereupon all such officers and all other.persons employed in the implementation of this Act shall observe and follow such orders, instructions or directions. 169. (1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one ofthe following methods, namely:- (a) by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner holding authority to appear in the proceedings on behalfof the taxable person or to a person regularly employedby him in connection with the business, or to any adult member of family residing with the taxable person; or (b) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or hisauthorised representative, if any, at hislastknown place of business or residence-er (c) by sending a communication to his e-mail address provided at the time of registration oras amended from time to time; or (d) by making it available on the common portal; or ( e) bypublication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carri?,d on business or personally worked for gain; or (f) if none of the modesaforesaid is practicable, by affixirtg it in some conspicuous place at his Jast known place of' business or· residence and if such mode is not practicable for any reason, then by affixing a copy thereof on the notice board ofthe office of theconcerned officer or authority who or which passed suchdecision or order or issued such summonsor notice. Power to issue instructions or directions. Service of notice in certain circumstances.

(2) Every decision, order, summons, notice or any communication shall be deemed to have been served on the date on which itis tendered or published or a copy thereof is'affixed in the manner provided in sub-section (1). ( 3) When such decision, order, summons, notice or any communicationis sent by registered post or speed post, it shall be deemed to havebeen received by the addressee at the expiry of the period normally'talcen by such post in transit unless the contrary is proved«: .. 170. The amount of tax, interest, penalty, fine or any other sum Roundingoffoftaxetc. payable, and the amount of refund or any other sum due, under the provisions .ofthis J\ct sll.all be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee andif such · part is less than fifty paise it shall be ignored. 171. ( 1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. (2) The Central Government may on recommendations of the Council, by notification, constitute an Authority, or em?wer an existing A?ority constituted under any lawfor the time being in force, to examine whether input · tax credits availed by any registered person or the reduction in. the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. ( 3) The Authority referred to in sub-section (2) shall exercise such powers an? discharge such functions as may be prescribed. J_,: 172. ( 1) if any difficulty atises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general ora special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of rep:ioving the said difficulty : Provided Jhat no such order shall be K,lade after the expiry of a period of three years from the dateof commencement ofthis Act. Anti-profiteering Measure. Removal of difficulties.

43ofl994 {2) &aycmkr made under this section spall be: laid, as soon •maybe, after it is madibefore the

(1) The Government may, on the recommendations ofthe Council, by notification, make rules for carrying out the ' provisions ofthis Act. Levy of fee. Power of Government to makerules. 156 (2) Without prejudice to the generality of the provisions of sub-section (1), the Government may make rules for all or any ofthe matters which by this Act are required to be, or may be, prescribed or in respect of which provisions are to be or may be madfby rules. (3) The power to make rules conferred by this section shall include the power to give retrospective effect to the rules or any of them from a date not earlier than the date on which the provisions of this Act come into force. (4) Any rules made under sub-section(!) may provide that a contravention thereof shall be liable to a penalty not exceeding ten thousand rupees.

The Government may, by notification, make regulations consistent with this Act and the rules made thereunder to carry out the provisions of this Act. 166 .. Every rule made by the Government, every regulation made by the Government and every notification issued by the Government under this Act, shall be laid, as soon as may be after it is made or issued, before the State Legislature, while it i§ in session, for a total period ·of thirty days which. may ,, be comprised in one session or • in two or more successive sessions, and if, before the expiry of the session immediately following the session or the successive sessions aforesaid, the State Legislature agrees in making any modification in the rule or regulation or in the notification, as the case may be, or the State Legislature agrees that the rule or regulation or the notification should not be made, the rule or regulation or notification, as the case may be, shall thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, thatany such modification or annulm?nt shall be without prejudice to the validity of anything previously done under that rule or regulation or notification, as the case may be. ·

The Commissioner may, by notification, direct that subject to such conditions, if any, as may be specified in the notification, any· power exercisable by any authority or officer under this Act may be exercisable also by another authority or officer· as may be specified in such notification. Power to make regulations. Laying of rules, regulations and notifications. Delegation of powe 157

The Commissioner may, ifhe considers it necessary or expedient· so. to dofor the purpose of uniformity in the implementation of this. Act, issue such orders, instructions or direcuons.to.the .• State tax officers as it may deem ·fit, and thereupon all such officers and all other.persons employed in the implementation of this Act shall observe and follow such orders, instructions or directions.

(1) Any decision, order, summons, notice or other communication under this Act or the rules made thereunder shall be served by any one ofthe following methods, namely:- (a) by giving or tendering it directly or by a messenger including a courier to the addressee or the taxable person or to his manager or authorised representative or an advocate or a tax practitioner holding authority to appear in the proceedings on behalfof the taxable person or to a person regularly employedby him in connection with the business, or to any adult member of family residing with the taxable person; or (b) by registered post or speed post or courier with acknowledgement due, to the person for whom it is intended or hisauthorised representative, if any, at hislastknown place of business or residence-er (c) by sending a communication to his e-mail address provided at the time of registration oras amended from time to time; or (d) by making it available on the common portal; or ( e) bypublication in a newspaper circulating in the locality in which the taxable person or the person to whom it is issued is last known to have resided, carri?,d on business or personally worked for gain; or (f) if none of the modesaforesaid is practicable, by affixirtg it in some conspicuous place at his Jast known place of' business or· residence and if such mode is not practicable for any reason, then by affixing a copy thereof on the notice board ofthe office of theconcerned officer or authority who or which passed suchdecision or order or issued such summonsor notice. Power to issue instructions or directions. Service of notice in certain circumstances. 158 (2) Every decision, order, summons, notice or any communication shall be deemed to have been served on the date on which itis tendered or published or a copy thereof is'affixed in the manner provided in sub-section (1). ( 3) When such decision, order, summons, notice or any communicationis sent by registered post or speed post, it shall be deemed to havebeen received by the addressee at the expiry of the period normally'talcen by such post in transit unless the contrary is proved«: ..

The amount of tax, interest, penalty, fine or any other sum Roundingoffoftaxetc. payable, and the amount of refund or any other sum due, under the provisions .ofthis J\ct sll.all be rounded off to the nearest rupee and, for this purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty paise or more, it shall be increased to one rupee andif such · part is less than fifty paise it shall be ignored.

( 1) Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices. (2) The Central Government may on recommendations of the Council, by notification, constitute an Authority, or em?wer an existing A?ority constituted under any lawfor the time being in force, to examine whether input · tax credits availed by any registered person or the reduction in. the tax rate have actually resulted in a commensurate reduction in the price of the goods or services or both supplied by him. ( 3) The Authority referred to in sub-section (2) shall exercise such powers an? discharge such functions as may be prescribed. J_,:

( 1) if any difficulty atises in giving effect to any provisions of this Act, the Government may, on the recommendations of the Council, by a general ora special order published in the Official Gazette, make such provisions not inconsistent with the provisions of this Act or the rules or regulations made thereunder, as may be necessary or expedient for the purpose of rep:ioving the said difficulty : Provided Jhat no such order shall be K,lade after the expiry of a period of three years from the dateof commencement ofthis Act. Anti-profiteering Measure. Removal of difficulties. 43ofl994 159 {2) &aycmkr made under this section spall be: laid, as soon •maybe, after it is madibefore the State Legislature.

Sa'R as olhtnrise provided in this Act, on and from the date of Amendment of certain • ,_,..,.. rmeot of this Act- Acts ill lhr Manipor Municipalities Act, ,1? in section 75, in sub- Kdion (1). clauses (c), and (i) shall be omitted; 6of200S 145-? ... 03101ntil 8of200D 174. (1) Saft as otherwise provided in this Act, on and from the date of commencement of this Act,. (i) the Manipur Value Added Tax Act, 2004, except in respect of goods included in the Entry of the State List of the Seventh Schedule to the Constitution, (ii) the Assam Amusement and Betting Tax Act, 1939(as extended to Manipur), (iii) the Manipur Tax on Luxury (Hotel & Lodging Houses) Act. (hereafter referred to as the repealed Acts) are hereby repealed. (2) The repeal of the said Acts and the amendment of the Acts specified in section (hereafter referred to as "such amendment'' or "amended Act': as the case may be) to the extent mentioned in sub-section (1) or section shall not- (a) revive anything not in force or existing at the time of such repeal; or (b) affect the previous operation of the repealed Acts and orders or anything duly done or suffered thereunder; or (c) affect any right, privilege, obligation, or liability acquired, accrued or incurred under the repealed Acts or orders under such repealed Acts: Provided that any tax exemption granted- as an incentive against investment through a notification shall not continue as privilege if the said notification is rescinded on or after the appointed day; or' Repeal and saving

IO of (d) affect any tax, surcharge, penalty, interest as are due or may become due or any forfeiture or punishment incurred or inflicted in respect of any offence or violation committed against the provisions ofthe repealed Acts; or (e) affect any investigation, inquiry, assessment proceedings, adjudication and any other legal proceedings or recovery of arrears or remedy in respect of any such tax, surcharge, penalty, fine, interest, right, privilege, obligation, liability, forfeiture or punishment, as aforesaid, and any such Investigation, inquiry, assessment proceedings, adjudication and other legal proceedings or recovery of arrears or remedy may be instituted, continuedor enforced, and any such tax, surcharge, penalty, fine, interest, forfeiture or punishment may belevied or imposed as ifthese Acts had not been so repealed; or (f) affect any proceedings including that relating to an appeal, revision, review or reference, instituted before, on or· after· the appointed day under the said repealed Acts and such proceedings shall be continuedunder the said repealed Acts as if this Act had not come into forceand the said Acts had not been amended or repealed. (3) The mention ofthe particular n;i,atters referred to in section and sub-section (1) . shall not be held to prejudice or affect the general application of section of the Manipur GeneralClauses Act, (Act No.IO of 1897) with regard to the effect of repeal.

.. SCHEI>mffil {See-section ·7tl ACTIVITIES TOBE TREATED AS SUPPLY EVEN IFMADE WITH- OUT CONSIDERA'lfflN iC.:: ... ,, Jr' \ 1. ??rmanenf transfer or dispos? o{ b?ess assets where input tax ?redit hasbeen availed on such assets . . 2. Supply of goo<ls '.or services or both between related persons or between distificipersons'aSspecified in section 25, when made in the course or furtherance of business; Providedthat gifts n.ot exceeding fifty thousaiid rupees in value in a financial year by an employer to an employee: shall not be treated as supply of goods or services or both. 3. Supply of goods-! (a) by a prin?ipal to his agent whiie'the agent undertakes to supply such goods on behalf ofthe principal; or · (b) by an agent toh' principal where the agent undertakes t6receive such goods on behalfof the principal. 4. Import .. of. services by a taxable person . from a related person or from any ofhis other establishments outside India, in the course or furtheranceorbusiness,

SGHEDULEII [See section7J ACTIVITIESTO BE TREATED AS SUPPLY OF GOODS OR SUPPLYOF SERVICES 1. Transfer (a) any transfer ofthe title .in goods is a supply of goods; (b) any transfer ofright in goods or of undividedshare in goods without the transfer of title tlteteot .•• a supply of services; (c) any transfer of title in goods und?; an agreement which stipulates that property in goods shall pass at a fu.ture date upon payment of full consideration as. agreed, is a supply of goods. 2. Landand Building (a) any lease, tenanc;>i, easement, lice.nee to occupy. land is a supply of services; (b) any lease or letting out of the building including a commercial, industrial or residential complex forbusiness or commerce, either ?holly or partly, is a supply of services. ?,- .·.·' ;," ··',·.·.. ,?-- ·•.. . . . ,.. . _., . ·,. ·. ·,. ' 3. Treatment or process Any treatment or process which is appliedto another person's goods is a supply of services. · 4. Transferof business assets (a) where goods fo{,;ning part of tne as.?ts of a. business are transferred or disposed of by or under the directions of the person carrying on the business so as no longer to form part of those assets, whether or not for a consideration, such transfer or disposal is a supply of goods by the person; · (b) where, by or under thedirection of a person carrying on a business, goods held or used forthe purposes ofthebusiness are put to any private useor are used, or made available to anyperson for use, for any purpose otherthan a purpose of the business, whether or not for a consideration, the usage or making availableof such goods is a supply of services; (c) where any person ceases to be a taxable person, any goods forming part ofthe assets of any business carried on by himshall be deemed to be supplied by him in the course or furtherance of hisbusiness immediately before he ceases to be a taxable person, unless- (i) the business is transferred as a going concern to another person; or (ii) thebusiness is carried on by a personal representative who is deemed to be a taxable person. 5. Supply of services The following shallbe treated as supply of service, namely:- (a) renting of immovable property;

20of (b) construction of a cowplex, building. civil structure ora part thereof, including a complex or building intendedfor sale to a buyer, wholly or partly, except where the entire consideiilion has beep .received after ?ce of completion certificate, }wh?te · ri!quired, by the competent authority or after its first occupation, whichever is-earlier. Explanation:- For the purposes.'of this clause- ( 1) th? ,?ression "competent authority" means the Government or any authority authorised to issue completion certificate under any law for the time being in force and in case of non-requirement of such certificate from such authority, from any or the following. namely> (i) an. ?chitect .·. regist?red wltt the Council of . A,.rchitecture constituted under the Architects Act, 1972; or (ii) a chartered engineer registe;e.d w:thtb? mstitution of Engineers (India);or (iii) a licensed surveyor of the respective local body of the city or town or village or development or plati.ning authority; (2) th?. ?tession "constrμction" inqudes. additions,. alterations, replacements or remodelling.?f any ,exisWi1S ?ivil structure, (c) temporary transfer or permitting the use or enjoyment of any intellectual property right; (d) development, design, programming, customisation, adaptation, "·.: upgradation, enhancement, . implementation of information technology software; {e) agreeing to the obligation to ref?11 from an act, or to tolerate an act or a situation, or to do an act; and (ff ' fransfer'of the right t<> tJst any goodsfo? any purpose ( whether or not for a specified period) f()r cash, deferred payment or other valuable consideration. 6. . Composite supply The following composite supplies shall be treated as a supply of services, namely:- (a) works contract as defined in clause (119) of section 2; and (b) supply, by way of or as part of any service or in any other manner whatseever; of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor forhuman consumption), where such supply or service is' for cash, deferred payment or other valuable consideration. 7. Supply of Goods The following shall be treated as supply of goods, namely:- Supply of goods by any unincorporated association or body of persons .to a member thereof for cash, deferred payment or other valuable consideration.

'\_ ... -·_., .... ,., SCHBDutB Ill· (See aectJoa AClttttDS OR TRANSACI'IONS.WHIOHSIIAU,BBTRBATPll M81THBR AS A SUPPLYOP GOODS ·NOtlA ftmttldP 81lllVld!S 1. Service, by an employee to theemploye,ln .. c.ou.r,eofor In relatlon to hli'em,ployment. 2. Servlcea by any court or 1\ibunal e1tabU.bed ?er any law fbr tfle tlme being tmf&•ce. · · . . 3. (a) the fimotlollt pc,,folmff by the Me•• ,Qf;,PadlmMmt, ?ben ofState Le8k]ature, M?er1 of .; }tanchapb. Memben of M,umofpaUtle.s and Members . of · 6ther local authbrlUes, · (b) the duties rperform?d by' any peradn whoholdi any polt In pursuance of theprovlalom of the ConsUtuUon In that c:apadt)1 or (c) the d?tle, p.-forjp.ed by any peraon q a Chalrpe? or a ¥ember or .. ?· Dlre.ctor ln a, body established by the Central Governmtnt or a State·G<>venunent o,r local authority andwho Is· not deesnect u an emplc,yee before the commencement of thlt-clause? 4. Services of funeral, burlaJ, crematorium or mortuary including transportation of the 4eceued. s. Sale ofland and. subject toclatise (b) .of paragraph of Schedule Il, ule ef"buiU:llng. 6. Actlonable-.dilms,.other Jh? Jotteqi?ettlns and gambling. 1; , .. :,. ; .C,· .. .?·:?- ,I .- .; BrJ>la?tlOf',t- Por the purpo•e• gf pmgnph2 the term «court" lndU? District Court, High G"m-t apd.Su_p.remo Court. . . .· . _·-, u . . Tc?. KAMTh.U KlJMAR SINGH, Secretary (Law) to the Goyt. of Manipur, \ Printed at theDirectorateof Printing & Stationery, Government of Manipur/405-C/19-06-2017.

«$3113 EXTRAORDINARY PUBLISHEDBYAUTHORITY No.887Imphal,Wednesday,June14,2017(Jyaistha24,1939) GOVERNMENTOFMANIPUR SECRETARIAT:LAW&LEGISLATIVEAFFAIRSDEPARTMENT NOTIFICATION Imphal,June14,2017 No.2/29/2017—-Leg/L:ThefollowingActoftheLegislature,ManipurWhichreceivedassentof theGovernorofManipuronJune14,2017ISherebypublishedintheOfficialGazette: \1 THEMANIPURGOODSANDSERVICESTAXACT,2017 (ManipurAct No.3of2017) AN ACT tomakea provisionforlevyandcollectionoftaxonintra-State supplyofgoodsorservicesorbothbytheStateofManipurand themattersconnectedtherewithorincidentalthereto. BEitenactedbyLegislatureofManipurintheSixty-eighthYear oftheRepublicoflndiaasfollows:-